Net assets. The order of estimation and calculation.

The economic crisis had the most unfavorable effect on the financial position of many Russian companies, as a result of which the value of net assets could significantly decrease. Net assets are the book value of the entire property of an enterprise, net of the amount of the company's liabilities. The value of net assets can be calculated on the basis of the balance sheet, it is reflected in the financial statement of changes in equity. The value of the net assets of the joint-stock company can be calculated according to the order of the Ministry of Finance of Russia No. 10, but it also stipulates that the calculation procedure does not apply to insurance and banking joint-stock companies. The procedure for assessing the net assets of the insurance company is regulated by the order of the Ministry of Finance of Russia in conjunction with the Federal Service for Financial Markets No. 7. Instead of calculating net assets, credit institutions calculate their own capital.

The size of net assets often affects the payment of dividends, as well as the future fate of the company almost always depends on it. In the event that the composition of net assets will be significantly less than the authorized capital, the company will have to immediately take certain measures. If the value of net assets is below the minimum amount of the authorized capital, it is quite possible to decide on voluntary liquidation of the enterprise, or liquidation of the company at the request of tax authorities in a judicial procedure. It should be borne in mind that the liquidation of a legal entity means the termination of its activities without the transfer of rights and obligations to another person. Net assets of joint-stock companies are subject to disclosure in the annual and interim financial statements of the enterprise, although there are no such instructions for limited liability companies.

The composition of net assets is important for enterprises that pay dividends to their shareholders, the decision on the distribution of profits among participants is taken at the general meeting of shareholders. However, a limited liability company does not have the right to make such a decision if the full value of net assets at the time of making a decision is less than the authorized capital, or it will be less as a result of the decision taken. A limited liability company has the right once a quarter, six months or a year to raise the issue of the distribution of the company's profits among its participants.

A joint-stock company can not decide on the distribution of profits if:

• Net assets of the enterprise are less than its authorized capital;
• As a result of payments, the net asset value of the enterprise will be less than the reserve fund and its authorized capital;
• On the day of making a decision the composition of net assets is less than the authorized capital of the enterprise.

In the domestic market, there are many enterprises with negative net assets, and they are quite favorable until the tax authorities have filed a suit to liquidate the enterprise in court. This fact proves once again that the chief of the enterprise should always be aware of his financial situation, although the accounting reporting is not always objective. The most important indicators that determine the structure of capital and characterize the stability of the enterprise are net assets and their composition in the total balance currency.

The analysis of the net asset value consists of an analysis of the dynamics of net assets and an assessment of its reality, an assessment of the ratios of the share capital and net assets, as well as an assessment of the profitability and turnover of net assets. At the same time, we should not forget that the size of net assets is quite arbitrary, since it is calculated on the basis of calculations of the balance sheet, in which the assets are represented at discount prices, and not at market prices.