What means of non-current assets include and their accounting
Assets mean all objects that are locatedon the balance sheet of the enterprise. They are recorded in the accounts of the asset, in the debit column. Therefore, the total value of the company's assets must be judged by the debit of active accounts.
Assets are tangible, financial andintangible. There is also their classification in relation to the production process. Here we distinguish between current and non-current assets, depending on their participation in the production process.
Current assets are assets thatparticipates in the production process only once, as a result of which the value of these assets is fully included in the cost of production. This includes: materials, finished products, work performed or goods sold, but not yet paid, cash, etc.
If the property of the enterprise participates in severalproduction cycles, it is referred to as non-current assets. Their cost is distributed in the cost of production parts and is called depreciation. Non-current assets include the following categories: fixed assets on balance and intangible assets. The fixed assets included in non-current assets include objects that are used for more than one year or have a high cost - higher than 30 base units. Intangible assets include the cost of licenses, licensed programs used in the enterprise, permits and other non-current assets.
Changes in the structure of non-current assets givea complete description of the development of the enterprise as a whole. If it can be seen from the analysis that non-current assets include categories of objects related to fixed assets that tend to increase in value, this indicates an expansion of the company's core production. With the increase of intangible assets, investments are made in new technologies and enterprise innovation.
Such a variation in specific gravity of a certain typeNon-current assets shows the strategy of the enterprise as a whole. All material investments in non-current assets are due to their purchase and acquisition for long-term use (more than one year). Investments in non-current assets include: investments in property that relates to fixed assets of the enterprise, investments in assets related to intangible assets, investments in scientific and technical developments.
Accounting for non-current assets is maintained in the accountingbalance using a series of accounts. With their help, the presence and movement of fixed assets is monitored. This type of account for the accounting of objects that are related to fixed assets, intangible assets, equipment for installation, etc. In addition, for all non-current assets, amortization is accrued, which is also displayed on special accounts for the balance sheet. These include accounts for depreciation of fixed assets and other non-current assets. Each main account has sub-accounts designed to be recorded for each category of non-current assets.
Thus, all means are recordedenterprises that include non-current assets. There is an account for accounting for investments in assets related to non-current. It is used to control the invested funds until the moment of taking the object to the balance. Investments made in non-current assets are displayed on account 08 of the balance sheet. For each object purchased by the enterprise, a sub-account is created. On its balance sheet, the costs associated with the acquisition and the write-off amount received after the object is recorded.
At each enterprise there should be a strict accountingall objects that are non-current assets include. To do this, use the main accounts necessary to account for their availability and traffic in general, and a sub-account for accounting for each individual object of non-current assets.