Authorized capital on the balance sheet. Balance sheet. Section III Capital and reserves

Equity on the balance sheet reflects the receipt of funds such as shareholder contributions, additional capital and profits. Its value can constantly change. On initial stage When a company is just being formed, it has one source of financing - contributions from the founders.

Let's consider equity in the balance sheet using the example of one of the most complex forms - JSC. Joint-stock companies have an additional source of equity capital. It is not available to LLCs, individual entrepreneurs and other forms. JSC has the right to issue shares. The company's charter stipulates in advance the amount for which it can create these securities. But usually a joint stock company does not issue shares for this entire value at once. The balance shows the amount already paid. As soon as new shares are issued, the book value of capital increases by an amount. But this amount does not always increase. Own capital in the balance sheet decreases if the joint-stock company begins to repurchase its own shares. Its amount is reflected in the liabilities section. Shareholders invest their funds in the organization's shares, that is, they give a loan, as it were. But at the same time, investors become co-owners of the company. The shareholder has every right to resell the security, but cannot return it back to the organization.

So, the sources of equity in the balance sheet are reflected in the “liabilities” section. Let's consider what non-commercial income the company may still have.

• share premium - the difference between the price of a share and the cost at which it was sold;
• additional capital - the amount that a company receives from the sale of its own assets at an inflated price or from the acquisition of assets of another company at a reduced cost;
• random donations in any form: property, money, etc.

Equity in the balance sheet also reflects part of the organization's profit. When the joint-stock company receives it, it pays dividends from it to its investors. The profit remaining after this goes to increase equity capital.

How else is equity reflected on the balance sheet? The line “Reserve capital” indicates the amount of retained earnings that is intended for targeted expenses. The company must create such reserves. In this case, tax legislation provides for a number of benefits. Reserves are made from income received. Funds from this article are used for renewal to cover various damages, losses, etc. The size of the reserve is determined by the management of the company and depends on the situation in the organization at this moment. That is, if in the near future the company may suffer certain losses due to some risks, then the founders decide to allocate a certain amount for insurance.

The “Equity” section also includes the following balance sheet lines:

• additional capital. This reflects the value of assets that the organization received free of charge. If a company buys shares at a price higher than the nominal price, then the difference is also included in this section of the balance sheet;
• the income that the company has received since the beginning of its activities minus dividends, losses, and various capital expenses;
• adjustment for revaluation of assets. The amount of increase or decrease in the value of assets owned by the enterprise;
• for transactions related to the purchase or sale of foreign currency;
• summary of expenses and income. This is an account that is opened temporarily. This contains the amounts of all profits and expenses before they are transferred to the “Net profit” or “Retained earnings” line.

The entire cost of equity is indicated in the third section of the balance sheet. The larger it is, the more stable the position of the company.

The equity capital of an enterprise is its basic platform on which everything is built further development business. The higher this indicator, the more stable the company, the more attractive it looks to investors. Let's consider two variants of formulas and examples of how you can determine the amount of equity capital of an enterprise from the balance sheet.

Determination of equity

The equity capital of an enterprise is the totality of its net assets invested initially by the founders, plus retained earnings.

Essentially, a company's equity capital consists of authorized capital, additional and reserve capital, retained earnings and various special funds. This also includes amounts after the revaluation of non-current assets and own shares purchased back from shareholders. In this case, the latter indicator is taken into account in the liabilities side of the balance sheet as negative and, when summed up, reduces the size of the company’s equity capital. This is logical - if the authorized capital, which is part of the equity capital, is formed when shareholders pay for shares, then their buyback should lead to its reduction.

Authorized capital– is formed during the formation of an enterprise and consists of contributions from the founders.

Extra capital is formed if the founders of the company invest additional funds in it in addition to their share in the authorized capital. In addition, an additional fund can be formed in the event of receiving income from the issue; funds from the revaluation of non-current assets and part of the profit remaining after distribution can also be directed here.

Reserve capital– these are funds set aside by an enterprise for various force majeure events so that losses can be compensated.

retained earnings– these are the remaining available funds from profits after the company has paid all tax and other obligatory payments. The balance sheet for this line also reflects the balances of various special funds formed at the enterprise.

Equity on balance sheet

If we take the currently valid form of the balance sheet (OKUD 071001, taking into account the latest edition dated 04/06/2015), then the indicator of the amount of equity capital can be found in the final line section III"Capital and reserves". According to this, equity will be equal to the sum lines of this section.

Let's consider example No. 1 determination of equity capital on the balance sheet.

Accordingly, equity capital at the end of the first quarter of 2016 will be equal to: (15.0-5.0) + 1.2 + 50.0 + 255.0 = 316.2 thousand rubles. If you look at previous periods, it becomes noticeable that the company is in the stage of active growth of its financial well-being.

This formula for determining equity is most often used in accounting. There is a second way to find the indicator - through the left, active part balance. In this case, the company’s equity capital is defined as the totality of non-current and current assets (lines 1100 and 1200) minus long-term and short-term liabilities (lines 1400 and 1500).

Example No. 2

Accordingly, in this example, the company’s equity capital will be equal to: (700+300) – (300+300) = 400 thousand rubles.

As the amount of equity capital grows, the investment potential of the company and its financial strength also increase. This is an important indicator of the economic condition of the enterprise. If it is secured with its own funds, it does not have to resort to loans, which indicates stability and independence. In the current realities, of course, few people manage without borrowed funds, but if the amount of equity capital is sufficient, there is no need to be afraid for the financial independence of the enterprise.

Equity capital is the total amount of the organization that was formed on the basis of the authorized, reserve and additional capital.

This composition can include retained earnings and other income of the enterprise.

Equity performs very important role in the activities of the enterprise. If the company has its own savings, then it is considered independent from external sources.

The activity will be more effective and most likely it will contribute to the development of healthy and successful business.

Return on equity on balance sheet

It’s good when the enterprise has its own capital, which can be used to implement the company’s work, but it is better if profitability is at high level.

So, to correctly calculate return on equity, it is necessary to divide net profit by the average annual capital.

The return on invested capital ratio on the balance sheet is calculated as net profit organization divided by the average annual total capital.

Before you begin calculating return on equity, you must use quarterly or annual reporting.

A detailed assessment of profitability will allow you to maximize the assessment of production bottlenecks, avoid unnecessary costs and increase profits.

Calculation of equity on the balance sheet

To properly formulate a business plan, you must use the best professional quality workers. Based on this report, you can determine the amount of equity capital.

To determine the efficiency of using a company's assets, it is necessary to compare data for several periods. As the practice of forming shows financial statements- this is the best decision.

Equity is calculated after all expenses, taxes, and dividends have been paid. Only after this can you begin to calculate the total amount of equity.

To do this, we will need to add up the equity capital for the previous period, reserve capital, retained earnings, accounts receivable, and only after this is it possible to find out the amount of equity capital.

Own capital of the enterprise

Own capital has great potential when it comes to a large amount.

With the help of funds you can carry out the following activities:

• Develop enterprise sectors, which are very important, but currently need investment;
• Purchase new specialized buildings for organizing production processes;
• Attracting new qualified specialists to improve the quality of production or provision of services;
• Rent or purchase new equipment, which will contribute to increasing the production batch of goods and improving the quality of goods;
• Purchasing a new license or patent, which ensures maximum improvement in the operation of the enterprise;
• Increase advertising campaign to obtain maximum profit.

Based on the results, it can be understood that equity capital provides many opportunities in terms of the development of the company.

It is not advisable for money to be in a passive state, especially if it is an enterprise.

In this way, new ways to improve work can be found and this can open up new horizons for development.

Return on equity

According to well-known experts, equity capital must work correctly and for this it is worth:

• Start implementing an idea that has been carefully processed, that is, approved by analysts, financiers, and other interested parties;
• Use only proven methods in your work, since this can only provide maximum effect;
• Work should only be carried out with the participation of trusted suppliers, In such cases, you should not pay attention to the cheapness of their services.

This chain can be continued endlessly, but in turn you need to notice the main aspects that will effectively affect the work process and, in turn, the return on capital.

To constantly maintain profitability at a high level, it is necessary to pay attention to all indicators, even those that at first glance do not have much impact.

Equity ratio

The share of equity capital in a firm's total capital employed is very important point at work. Available funds help to increase work efficiency.

If borrowed funds predominate, then the company is financially dependent on creditors, which indicates a low asset liquidity ratio. The higher the financial stability indicator, the better for the organization.

To correctly calculate the intrinsic concentration coefficient, it is necessary total amount The assets of the enterprise are divided by the balance sheet currency.

Capital can only be assessed to the maximum using the most accurate methods, which are based on the theories of famous economists.

After the calculations, you should definitely compare them and calculate how you can improve the indicators.

Own working capital

Own working capital is funds that are constantly at the disposal of the organization.

It is used to carry out the production cycle and pay off debt on costs.

Equity assets

Capital is one of the most important particles without which the functioning of an enterprise is generally impossible.

It is considered the main factor of activity for both the entrepreneur and the state. Any activity must be supported by a set material assets, which are necessary for both the commercial and production functioning of the company.

In the process of work, this concept is formulated as:

• a means that is constantly in circulation, and brings results in the form of profit;
• source of funding for obtaining arrived.

Equity Analysis

The total capital consists of the following parts:

1. Invested capital, which the company receives from investors and with the help of which activities are carried out;
2. Accumulated capital– this is the amount Money, which was obtained on the basis of the continuous activity of the enterprise.

The analysis has the following objectives:

• identification of main sources of financing, from which the direct functioning of the enterprise occurs;
• find out what priority the rights of owners have during the liquidation of the company;
• payment priority level dividends.

Based on the analysis, a future business plan is built that promotes adoption right decisions and of course increase your own capital.

Cost of equity

The correct determination of equity capital is based on the following factors:

• Initially, you should pay attention to the results of investing capital in activities(this can be seen in cash flows real project);
• determination of the cost of equity capital, which was invested in risky schemes.

After the analysis is carried out at this level, positive and normative results are compared. Based on the results obtained, the future of equity capital is determined.

The cost depends only on what strategy the entrepreneur adopts, since this will show whether it is worth working according to the established schedule.

Own capital accounting

The authorized capital is formed before the enterprise itself, since before opening its activities, this indicator must initially be approved.

The authorized capital is formed on the basis of:

• generated amount, which is confirmed by the cost and number of membership shares;
• the amount of capital approved in the documents, which is necessary for the activity;
• formed and reflected in the balance sheet.

Accounting for the authorized capital is reflected in account 85 of the balance sheet, i.e. in liabilities.

Before you make an important financial decision, you need to properly consider financial position. Based on the analysis, it is possible to build the correct financial structure for development.

Equity management

Capital in an enterprise is divided into own and borrowed capital. They have a very important influence on the functioning of the company.

Internal sources of financing are considered the most optimal. This can include depreciation, which plays an important role in production.

Borrowed ones include:

• invested facilities;
• loans jar;
• cash from other companies.

You shouldn’t contact them, but sometimes this is the only way to keep the company afloat.

Managing capital is not easy, but it is still possible. To do this, you need to correctly distribute priorities.

Need to involve best economists, if allowed financial resources. It is definitely worth paying attention to the process of distributing funds between the company’s sectors.

Own capital is an instrument of activity that can be used to achieve any production and non-production goals.

The balance sheet is one of the main sources of information about net worth.

Based on this document, financial decisions are made at the enterprise. It is in this way that a new plan for improving performance can be developed.

Sources of equity capital

The capital of the enterprise is formed on the basis of internal and external sources of financing

Internal sources are based on the successful activities of the organization - this is the profit of the enterprise, depreciation charges, sales and rental of idle assets of the enterprise.

If the company is able to pay off all its losses through internal sources, then it has high competitive advantages, which is very important for any entrepreneur

TO external sources contributions from the founders, without which the activity of the enterprise is impossible, should be included.

Own capital structure

The property of the enterprise is formed on the basis of:

1. fixed assets enterprises;
2. unfinished long-term investments;
3. intangible assets;
4. financial investments;
5. material and production stocks;
6. monetary funds;
7. financial investments.

Each company builds its business based on financial capabilities and potential. Based on this, the company determines the necessary sources of financing.

Equity valuation

The capital of the enterprise plays a role important object accounting. This indicator is assessed when forming general characteristics activities of the enterprise.

The success of an organization's activities is determined by conducting financial and management accounting. Using special techniques, you can find out the amount and capabilities of your own capital.

Today there are very few companies that have a sufficient amount of equity capital, as changes are constantly taking place in the global economy and in the country's politics.

Based on these factors, enterprises do not have time to adapt. Therefore, borrowed funds are required.

Own capital determines:

• success of activities;
• investment efficiency Money;
• amount of increase property.

Calculation of net worth

The amount of equity capital is calculated based on the generated data in accounting. As stated earlier in the article, this indicator can only be determined on the basis of the balance sheet data provided at the end of the reporting period.

Equity can only be assessed after all taxes have been paid and debt obligations have been repaid.

Only on the basis of this procedure can we proceed to determining equity capital.

Formation of own capital

The main goal of capital formation is to attract investment to implement the production cycle.

The initial step in capital formation is to determine the required amount of investment to implement the project. It is impossible to allow investments to be insufficient, because this may not bring results and may not cover losses.

Excess investment should also not be allowed, because you will have to pay interest on it, in other words, it is an unnecessary expense.

Maneuverability of equity capital

This coefficient shows how much of your own funds are in circulation and based on this, you can find out how much of your funds are in free movement.

The coefficient must be high enough for the enterprise to function normally.

It is quite difficult for many organizations to achieve this indicator at a high level. To achieve the maximum result, it is necessary to carefully calculate all known financial transactions in order to avoid costs.

Increase in equity

At an enterprise, such decisions are made by managers. The reasons may be different situations. And starting from this, you can begin to increase it.

There are ways:

• Increase the authorized capital founders;
• Selling or renting property(industrial building and equipment);
• Use of the profit received behind past period.
• Depreciation equipment.

You can also apply other possible ways to increase your equity capital.

Equity turnover

The company's funds must be in constant motion, as this helps to increase profits. A passive state indicates poor organization of work and a decrease in profits.

In order to speed up the turnover process, it is necessary to make adjustments to the production process itself - you can purchase new equipment and start producing a new product.

If the company provides services, then you can apply new technology provision.

In any case, it is impossible for capital to stagnate - nothing happens from such a phenomenon, except that the enterprise loses the opportunity to make a profit.

Equity audit

Any company conducts an audit, which helps to monitor the activities of managers as much as possible.

You need to pay attention to the following:

• term and amount of payments dividends;
• exact distribution arrived;
• timely payment taxes;
• legality of financial transactions;
• availability of all documentation and financial transactions at the enterprise;
• accountants' mistakes and economists.

Change in equity

Measures to change the indicator are taken by the manager and founders of the company. You should definitely adhere to all the rules, both economic and political.

Basically, the indicator changes due to the expansion of the product range. Sometimes equity changes due to a crisis. The founders want to save their money and reduce production.

Based on his own capital, the entrepreneur receives maximum profit and this contributes to the production development of the enterprise.

Correctly distributing this indicator will require a lot of time and qualified workers.

Capital is influenced by many factors that can either increase or decrease it. The presence of own capital allows the company to develop as much as possible.

Equity on the balance sheet represents the totality of funds at the disposal of the company. This is one of the key indicators that gives an idea of ​​the company's performance.

What is equity?

Own capital can be determined in two ways:

1. The net assets of the company are determined. In particular, you need to take into account only assets without taking into account liabilities (debts, etc.).
2. A set of values ​​that form equity capital.

Let's consider the features of these methods.

First method

Under the first method, equity is the combination of net assets and retained earnings. The admissibility of using this method is confirmed by the presence of a number of relevant regulations. For example, paragraph 3 of Article 35 of Federal Law No. 208 “On JSC” dated December 26, 1995 states that instead of determining net assets, one’s capital is calculated. Paragraph 29 of Order No. 208 of the Ministry of Agriculture dated January 20, 2005 states that the concept of net assets corresponds to the concept of equity capital.

Second method (as directed by the Ministry of Finance)

The second method assumes that equity includes these values:

• Formed upon registration of a company. It is formed from the contributions of the founders.
• Appears when the founders of the entity invest funds in the company in excess of their share in the management company. It can also be formed from income from the issue, revaluation, and retained earnings.
• It represents funds set aside by the company intended to cover losses in the event of an emergency.
• Represents the balance of funds formed after paying all tax payments and covering other obligations. This also includes the balances of special funds, if the company has them.

Own capital also includes shares of the company purchased from the auctioneer. The parameters necessary for calculations are contained in lines 1310-1370 of the balance sheet.

FOR YOUR INFORMATION! Which method is better to use? It all depends on the specific circumstances, business practices in a particular environment. Eg, desired method can be recommended by investors, banks and other interested parties.

Payment options

Let's consider formulas for calculation using various methods.

Traditional method

The traditional method is characterized by increased simplicity, and therefore it is popular in calculations. Let us recall that within the framework of this method, equity capital is identical to the size of net assets. To determine it, just look at the value of line 1300.

That is, the formula will be as follows: Own capital = Line 1300.

Obviously, an accountant can find out the value of equity within one minute.

Calculations according to the Ministry of Finance

The calculation can be carried out on the basis of Order of the Ministry of Finance No. 84n dated August 28, 2014. This order states that equity includes all assets except liabilities. These indicators are used in calculations:

• Line 1400 (debts with a repayment period of 12 months or more).
• Line 1500 (short-term debts).
• Page 1600 (assets).

Calculations are carried out in accordance with this procedure:

1. The values ​​from lines 1400 and 1500 are added together.
2. The credit indicators of account 98 (free receipt of property, etc.) are subtracted from the resulting value.
3. The balance on DT account 75 is subtracted from the indicator on line 1600.
4. From the value obtained in step 3, the result of the calculations from the second point is subtracted.

This calculation algorithm is more complex, but it gives more accurate results.

Optimal amount of equity capital

Simply calculating your net worth is not enough. It is also necessary to correctly decipher the calculation results. What should you pay attention to? First, you need to make sure that the net asset value is positive. If the indicator is negative, this indicates a high credit load. That is, the company has few assets and many liabilities that are not covered by these assets.

Average equity capital = (SC at the beginning of the year + SC at the end of the year) / 2.

All the necessary information can be taken from the balance sheet.

A good sign is that the amount of equity capital exceeds the size of the authorized capital. He testifies to investment attractiveness companies. It is equity capital in sufficient size that is evidence of the success of the business model. If the size of net assets smaller size authorized capital, then the LLC will be liquidated on the basis of paragraph 4 of Article 90 of the Civil Code of the Russian Federation.

Return on equity

Return on equity reflects the efficiency of the business, the degree of return from the work of the money in circulation. To put it simply, profitability gives an idea of ​​how much profit each ruble of a company's capital brings in. This indicator reflects the success of maintaining the return on capital at a normal level. The better this indicator, the more attractive the company will be to investors.

The return on equity ratio can be determined using this formula:

PE / SK * 100.

The formula uses these values:

• PE – net profit.
• SK – own capital.

Profitability can also be determined based on reporting documentation. In particular, you will need values ​​from the balance sheet and income statement lines. The formula for calculations will be:

Line 2400 / line 1300 * 100.

What profitability will be optimal? Usually a ratio of 10-12% is considered normal. However, it is relevant for developed countries. If there is high inflation in the state, then the normal value will be 20%. A negative sign is a negative indicator.

Equity turnover

The turnover of equity capital reflects the intensity of use of one’s funds, business activity. It is an indicator of the productivity of a firm's resource management. It indicates the number of revolutions needed to pay invoices. Turnover indicates these aspects of the company’s activities:

• The degree of effectiveness of the product sales system.
• Subject's dependence on borrowed funds.
• Finance activity.

Turnover is determined by this formula:

Line 2110 / 0.5 * (line 1300 at the beginning of the period + line 1300 at the end of the period).

Maneuverability

The equity capital agility ratio is one of the main values ​​that gives an idea of ​​efficiency entrepreneurial activity. It displays the degree of liquidity. You can find the coefficient using this formula:

(Line 1200 – line 1500) / line 1300.

All values ​​are taken from the balance sheet.

Explanation of calculation results:

• Coefficient from 0.7– excellent maneuverability and liquidity.
• From 0.5– average indicator of maneuverability.
• Up to 0.5 – low rate liquidity.

FOR YOUR INFORMATION! Knowing all the ratios relating to equity allows you to get an idea of ​​the efficiency of the company and its sustainability.

An indicator through which you can easily determine all the assets of an enterprise, recorded without taking into account the obligations of the subject, is equity capital. It is quite remarkable that many experts in the field of economics associate this concept with net assets. By the way, this state of affairs is even described in some federal laws.

For example, in the law “On joint stock companies“It is said that instead of the net asset indicator of a banking organization, the amount of equity capital can be calculated. Moreover, the order issued by the agricultural department states that equity capital, as a certain difference between the obligations assumed by the company, as well as its own property, is in full accordance with the value of net assets or property.

Hence it turns out that concepts such as net assets and equity capital may well be interchangeable. But, at their core, they are the same category economic concepts, which fully correspond to the volume of property owned by a particular enterprise, but minus its liabilities.

However, in economics there is a third concept, which includes equity capital. In accordance with this concept, equity can be understood as a list of the following indicators:

1. Capital (additional, authorized and reserve).
2. Shares of an enterprise purchased from shareholders.
3. That profit of the company that has not yet been distributed.
4. Non-current assets of the enterprise, or rather, their revaluation.

This concept is traditional, according to a huge number of experts in the field of economics. By the way, it is customary to use it not only on the territory Russian Federation, but also in many other countries of the world. Foreign economists very often use indicators similar to those listed in the balance sheet of the Russian Federation.

The method of this calculation depends on exactly what purpose is pursued for calculating net worth. At the same time, the management team of the company may receive instructions to use exclusively a specific method, thanks to which it is possible to actually calculate equity capital. Most often, such adjustments are made by investors or owners of the enterprise, who are able to make decisions regarding its future fate.

There are several methods by which you can determine the amount of equity:

1. Traditional formula.
2. Method of the Ministry of Finance.
3. According to the balance lines.

Own capital: traditional calculation formula

Thanks to the existing formula, you can quickly calculate the amount of equity capital. It should be noted that equity in this expression fully corresponds to line 1300 located in the balance sheet.

In this particular case, the formula looks like this:

Sk = page 1300

However, if we're talking about about the very essence of equity capital, as the net assets of an enterprise, its definition occurs somewhat differently.

Finance department method

First, you need to agree that the net capital of an enterprise and its own capital are one and the same concept. Thanks to this, it is possible to determine the essence of this concept based on the criteria that are officially prescribed in the legal acts of the Russian Federation.

Following this method, in the structure of assets that is taken into account for the calculation, absolutely all assets must be present, minus those reflecting the debt on the part of the founders, as well as shareholders, in relation to their contributions to the authorized capital.

It should be noted that when following this method of calculation, liabilities must also be taken into account. However, in this case, income related to state assistance, as well as receiving property free of charge, is not taken into account.