Analysis of fixed assets of the enterprise

Performing a comprehensive study of the state of affairs in a particular firm, it is necessary to cover completely all the stages of the production process, as well as to carefully analyze the assets and liabilities of the enterprise. Since fixed assets represent the largest part of assets, their analysis must be carried out especially carefully. In this article, we explain how to properly analyze the company's fixed assets.

First of all, let us try to understand why such an analysis is generally necessary? Analysis of fixed assets makes it possible to understand whether the company currently has the opportunity to successfully continue its operations without attracting additional investments, since fixed assets are the most capital-intensive assets. In addition, with the main means of producing the most financial fraud, so that a regular thorough analysis is simply necessary.

Let's consider the basic aspects of OS analysis:

- Analysis of the acquisition and evaluation of the OS allows you to systematize information about when the fixed assets were purchased, and whether their primary cost was correctly estimated in accordance with the law and accounting standards.

- Analysis of the technical condition of fixed assets allows you to assess the state of the OS now and predict the need for their replacement in the future. In addition, the analysis of the state of the OS will also allow to assess the correctness of the accrual of depreciation, allowing to identify frauds with the amounts of deductions.

- The analysis of the movement of fixed assets will show how the fixed assets moved during the period of their use between different departments of the enterprise, whether the transfer of ownership of the OS from one structural subdivision of the company to another was documented, and so on. To the movement of fixed assets can be attributed and their sale, however, taking into account the logical chain of operations with fixed assets, the sale of the OS, we consider it appropriate to refer to the next paragraph.

- Analysis of the reproduction of the OS - another source of detection of many violations and frauds. This analysis allows you to evaluate the use of funds and depreciation fund, as well as the reliability of documentary data on the sale of OS objects at a residual value. The analysis of reproduction makes it possible to understand how effectively an enterprise restores its main resource, without which no production activity is possible.

Since the period of turnover of the OS is quite large, and can range from two to ten (and even more) years, it makes no sense to analyze fixed assets annually. It is advisable to carry out this analysis approximately every five to seven years - this helps to keep the OS in check, monitor the appearance of the need to replace them due to technical condition and wear, and minimize fraud with OS objects.

In order to conduct an analysis of fixed assets, employees of the company (accountants, managers of the company) and outsiders, for example, representatives of audit firms, can be involved. The audit of the OS will be much more expensive than the self-checking, but will give confidence that it is conducted at a high level by high-class specialists, and there is no reason to fear that some facts of violations or frauds were not noticed.

Naturally, the analysis of fixed assets should not be a "verification for the sake of verification" - according to its results, measures should be taken regarding optimization of the OS, their updating, changes in the accounting system or other managerial decisions. The adoption of such decisions is, of course, the goal of the OS analysis.