Own capital of the enterprise: content, analysis and turnover

In equity is the total value of the funds and property of the enterprise that owns it. They are used to form net assets, and are compiled in accordance with the legislation of the Russian Federation. Let's consider in more detail the basic maintenance of own capital, the analysis and its оборачиваемость. The features of its compilation are the same for large and small companies.

Own capital includes specific sources of financial resources, different in terms of design, economic component and used sources:

• Statutory;
• Reserve;
• Additional.

In addition, it may include:

• Special purpose funds;
• undestributed profits;
• Government subsidies;
• Gratuitous receipts.

As it was mentioned, equity capital includes the charter capital, the value of which is determined by the charter and other constituent documents of the organization. Therefore, its transformation is possible only after appropriate changes to the constituent papers are made.

Additional capital includes the value of all property, which is fixed by the founders in excess of the registered cost of capital. It is not always formed according to plan.

Equity also includes a reserve, which is allocated by management from the company's profits and serves to cover possible losses and losses. Its size and the order of formation is determined usually by the current legislation and by-laws.

Undistributed profit is the main source of the company's property accumulation. It consists of a portion of the gross profit that remained after taxes and expenses for other purposes.

Special purpose funds include net profit, which is aimed at the expansion and development of the enterprise, as well as social activities.

Own capital serves as a source of the formation of funds that are used by the organization to realize its goals. It includes two basic components:

• The invested capital, which is invested by the owners in the "common boiler". It includes the nominal value of preferred and common shares, as well as additional funds and gratuitously transferred valuables.
• The accumulated is formed in addition to what was originally advanced by the owners. Usually its volume depends on how the turnover of equity passes. It includes those articles that are formed in the process of distribution of net profit. The source of its formation is undistributed profit. But here the order of registration, the purpose, possibilities and directions of application of each of articles will essentially differ.

A very important issue is the analysis of equity, because the ability to generate revenue is its main characteristic. Whichever area is directed, it is potentially always capable of making a profit if it is used effectively. Therefore, the main goal of the management is to ensure the maximization of the well-being of the owners. To assess the main projects, special analysis techniques are used.

The company's own capital must be formed in accordance with the legislation of the Russian Federation. In addition, the foundation documents and accounting policies are basic.

Consequently, in accordance with the law, the company must create at least two funds:

• Statutory;
• spare.

But the areas of their use are in the exclusive competence of the Board of Directors, which is able to identify priority, profitable activities.