What is equity in the balance sheet line. Own capital of the enterprise. Own capital: traditional calculation formula

Return on investment is the strongest workforce in the business and investment industry. The funds used to create the company's capital have their own value, the value of which is calculated by the organization's capabilities in selecting sources of financing. During the process, it is important to define the value of the indicator in a broad sense, i.e. find out how much the entire exploited capital costs the company or what results cooperation with the company brings to an individual or legal entity. To put it simply, this is the amount of financial responsibility assumed by the organization for the use of other people's funds in its work. The solution to this issue often falls on the shoulders of the audit at the stage of searching for investments or their use.

Balance sheet and types of capital

The balance sheet is an instant reflection of the state of the assets that are operated in the organization and the capital that forms these assets. This is a kind of economic version of the law of conservation of energy: assets do not appear just like that, they are obtained through an increase in capital.

Assets can be either current or non-current. Capital, in turn, is divided into equity (in the Russian Federation this is usually authorized capital + profit earned over the years of activity), long-term (debts taken out for more than a year) and short-term (debts payable, others, for example, accrued, but not transferred taxes, salaries, etc.) obligations.

Total assets are an indicator that sums up non-current and current assets.

Invested capital = volume of current and non-current assets - short-term relationships.

It also distinguishes between its own (authorized capital and accumulated profit, or: non-current assets + current assets – long-term and short-term liabilities) and working capital (current assets – short-term liabilities).

Total capital is the sum of all capital involved in the operation of the company. It is necessary to take into account the overall proportion of equity and debt in this indicator. The part with debt is most often referred to as the financial leverage of the enterprise.

In the balance sheet, the total capital is: Liabilities (line 1370, section 5 in the first form of the balance sheet) or the amount of Capital and reserves (line 490, section 3 in the first form), Long-term relationships (section four, line 590 of the first form), Short-term liabilities (Section 5 of the balance sheet in the first form, line 690).

Calculation of total capital

To determine the amount of ordinary capital, different calculation methods are suitable, for example, a methodological method of measured assessment. At the same time, the volume of the indicator, the costs associated with finding borrowed money, and the amount of income remaining within the company are included in the balance sheet process.

As a result, it remains to find the size of the variable called return on investment. It is calculated as follows:

Pk = Рп + Chp / Sk * 100 (!)

Notes:

• Рп – expenses associated with “solicitation” of third-party investments;
• Chn – the amount of net profit remaining under the management of the enterprise;
• Ck is the total capital that is operated by the company.

In turn, the amount of total capital is determined by auditors different methods, the most popular of which are:

1. The amount of long-term assets at the residual price of currently available assets, that is, the final information of sections 1, 2 and 3 of the asset balance sheet;
2. The sum of net present and long-term assets. The size of the first indicator is determined by excluding the balance of current liabilities from the results of the second and third sections of the asset;
3. Balance currency volume.

All indicators are calculated for any exact date (most often at the end of the period) or using the method of determining the average value.

The use of the first method of working with total capital is based on the use of its value, that is, the price of all the company’s property, the source of which is funds raised on a long- and short-term basis. Using this indicator in the denominator algorithm (!) helps calculate a variable called return on assets.

Another method of calculation is based on the fact that capital is a long-term investment. As a result, only own and long-term replacement capital is taken into the process; these are assets from which existing liabilities have been taken away.

The last method is very similar to the first. Differences begin to appear only in a situation where certain numbers are listed in the company’s balance sheet under the “Losses” item. The amount of losses results in discrepancies between the organization's property and total liabilities (there are more liabilities than assets). The economic content of the ratio of property - general liabilities - losses is that some part of the capital was lost to the company due to its irrational distribution, and as a result, all activities receive less funding than reflected in the balance sheet. In such a situation, the first counting method will be considered more correct.

The second method is most often used if it is necessary to evaluate the profitability of long-term assets.

If the owners (owners, shareholders) consider that it is necessary to leave a share of the profit in the organization’s turnover in order to satisfy its other financing needs with this step, then they can claim to receive an advisory profit. It turns out that the income from the initial investment is not only the amount of money paid to them, but also the entire net profit of the company, otherwise it is simply not profitable for the owners not to take out a share of the profit in the turnover. Therefore, the total cost of capital exploited in the organization must contain the entire total calculation of net profit, from which extraordinary expenses have been subtracted.

Along with the average price of the total capital employed, it is very important to be aware of the payback of its individual components. It turns out that the return on equity capital is calculated as follows: the numerator of the algorithm is the income of the owners. The denominator shows the capital contributed by shareholders to the operation of the company. It includes: authorized capital, funds and reserves, unused profit, additional capital.

It is also important to take into account that the amount of equity capital is determined over time. Therefore, there is a need to select a methodology for calculating equity capital, or more precisely: based on information about its condition on the exact date (most often the end of the period); determining the average indicator for the period.

An organization's equity capital refers to the totality of funds available to the company. Or rather, funds belonging to the participants of the organization. And according to the data balance sheet is the amount of the organization's equity capital determined?

How to determine the amount of equity capital?

According to the balance sheet, the amount of the organization’s equity capital corresponds to the balance of line 1300 “Total for Section III,” i.e., the total amount for Section III “Capital and Reserves” of the balance sheet (Order of the Ministry of Finance dated July 2, 2010 No. 66n, clause 66 of the Order of the Ministry of Finance dated July 29, 1998 No. 34n).

Let us recall that the balance of capital and reserves in the balance sheet is determined as follows:

line 1310 “Authorized capital (share capital, authorized capital, contributions of partners)”

line 1320 “Own shares purchased from shareholders”

line 1340 “Revaluation of non-current assets”

line 1350 “Additional capital (without revaluation)”

line 1360 “Reserve capital”

line 1370 “Retained earnings (uncovered loss)”

It is from the organization's own capital that dividends are paid to participants. And upon termination of the organization’s activities, the size of its equity capital will show the amount of funds that is subject to distribution among participants. However, it is necessary to understand that equity can also be negative. This is possible in the case when an organization operates at a loss and its accumulated value exceeds the sum of other elements of equity capital (authorized, additional, reserve capital).

We talked in more detail about accounting for an organization’s equity capital in a separate section.

Please note that if the calculation of equity capital is carried out to determine the maximum amount of interest taken into account in expenses on controlled debt, then the amount of equity capital will be equal to the sum of the balance of line 1300 and debts on taxes and fees (

Equity on the balance sheet is the total amount of a company's resources obtained exclusively from sources of financing belonging to its owners. Own capital can be calculated using several different methods; we will analyze them further.

The essence of the term “equity capital”

When characterizing equity capital as an object of economic analysis, two options for its definition are most often given:

• the value of the enterprise's assets unencumbered by the presence of external liabilities;
• a list of sources of financing the organization’s activities that make up the amount of its capital.

The first interpretation is often given in legal acts issued by government agencies:

• in Art. 35 Federal Law “On Joint Stock Companies” dated December 26, 1995 No. 208-FZ for institutions of the credit and financial sector it is proposed to calculate the value of equity capital, and not net assets;
• in paragraph 29 of the order of the Ministry of Agriculture of the Russian Federation dated January 20, 2005 No. 6, attention is drawn to the fact that the amount of equity capital is the difference between the assessment of all assets and liabilities of the company, or, in other words, is identical to the term net asset value.

It can be seen that the recognition of the equivalence of the terms equity and net assets is justified, and both of these categories are defined as the difference between the assets and liabilities of a business entity.

Next version of the description equity on the balance sheet is combining elements:

• authorized, additional, reserve fund;
• volume of shares purchased from shareholders;
• retained earnings of the company;
• amounts of revaluation of fixed assets and intangible assets.

All elements are reflected on pages 1310–1370 of the balance sheet. This idea fits well into the global theory of determining the size of equity capital.

The choice of method for calculating equity capital depends on the tasks facing the specialist performing the calculation. In this case, quite often it is necessary to take into account the wishes of investors, credit institutions or company owners. Management’s own views have a significant influence on the choice of algorithm.

A line in the balance sheet reflecting the amount of equity capital

Having chosen the standard method as the preferred approach to solving the issue of calculating the volume of equity capital, it is enough to use the data from page 1300. That is, just take the result of the 3rd section:

SK = line 1300 f. No. 1.

If the company is interested in using the calculation of net assets, then equity on the balance sheet is not just a single value from page 1300, but a full-fledged calculation with several variables in its composition. Let's look at how this calculation is done in the next section.

Calculation of equity capital on the balance sheet - formula by order of the Ministry of Finance

Taking as a basis the assumption that net assets are identical to equity capital, a different calculation algorithm can be applied. It is reflected in the order of the Ministry of Finance of the Russian Federation dated August 28, 2014 No. 84n and some other regulations:

SC = Act. calc. - Obligation. calc. ,

Act. calc. - assets accepted for calculation - all assets of the company minus the debt of the founders for contributions to the authorized capital;

Obligation calc. - liabilities accepted for calculation - all liabilities minus future income (the amount of state aid and gratuitously received property).

Balance sheet equity formula, according to the order of the Ministry of Finance, uses balance lines 1400, 1500, 1600.

In addition, information is collected separately on the debts of company participants on contributions to the authorized capital, accumulated by the entry Dt 75 Kt 80.

The corresponding deferred income on the account loan is also highlighted. 98.

The sequence of steps taken to implement the financial department method is as follows:

1. Receive the amount line 1400 and 1500 - the total amount of liabilities;
2. Reduce the result by credit balances on the account. 98 related to state aid and gratuitous receipts;
3. Reduce the figure on line 1600 by the amount of the debit balance on account 75;
4. Subtract from the value obtained in step 3 the value obtained in step 2.

Based on the above, equity according to balance sheet lines let's represent it in the form

SK = (line 1600 – ZU) – ((line 1400 + line 1500) – DBP),

ZU - debt of the founders;

DBP - deferred income.

The best value of the equity indicator

The result obtained as a result of calculations according to the instructions of the Ministry of Finance must be at least greater than zero. If the displayed value is less, the company has problems associated with excessive lending or insufficient quickly salable assets.

For the purpose of analytical research, a simple average of equity values ​​at the beginning and end of the year is most often used. It can be represented in the form of a formula:

SK Wed. = (SK1 + SK2) / 2.

IMPORTANT! If the option of calculating net assets is chosen as an approach to determining the amount of equity capital, then the result obtained cannot be less than the amount of the authorized capital. Otherwise, the JSC or LLC will be required to increase the received value to the amount of the authorized capital, or the tax authorities will have the right to initiate the liquidation procedure of the company.

***

Equity serves as a basic indicator of a company's financial strength, and it can choose from several methods to determine it.

u. It includes authorized, additional, reserve capital, as well as retained earnings and special purpose funds. You will find all these values ​​in Section III of the balance sheet “Capital and Reserves”.

Let's take a closer look at the formation of each article in this section. The authorized capital (line 410 of the balance sheet) represents the amount invested by the founders in the enterprise. It is stipulated in the constituent documents of the organization. The authorized capital can be changed only after making the appropriate entries in the constituent documents. Line 411 “Own shares repurchased from shareholders” should also be included in equity capital if the organization repurchased from shareholders securities.

Additional capital (line 420) is part of the enterprise’s equity capital, which includes amounts contributed by the founders in excess of the authorized capital. Remember that the amount of share premium of a joint-stock company, the amount of additional valuation of the organization’s non-current assets, as well as part of the retained earnings remaining at its disposal can be reflected as additional capital.

Reserve capital (line 430) is a part of equity capital that is allocated from the profit of the enterprise to cover possible losses and losses. Please note that reserve capital is divided into reserves formed in accordance with legislation (line 431) and reserves formed in accordance with constituent documents (line 432).

Remember that the main source of accumulation of enterprise property is retained earnings (line 470). It is equal between the financial result for the reporting period and the amount of taxes, as well as other payments made from profits. It also includes the balances of special-purpose funds created in the organization, which are not shown as a separate line.

Video on the topic

Sources:

• how to calculate authorized capital

Do you want to open a business or get a second education? For this, funds are undoubtedly needed. Many people refuse such ideas because there are no free funds and, it seems, nowhere to get them. Let's consider options for finding capital.

Instructions

The easiest way to find, and a rather big one, is to take a closer look at what you have and what you don’t need at the moment. This could be a dacha to which, due to lack of time, you come at most twice a year and where no one lives. Rent it out for the summer: depending on the condition of the dacha, you can get from 60,000 rubles for it. The same thing can happen with a car or other property. If you hardly ever drive your old car, it’s better to sell it and get at least the same 60,000 rubles or more.

In some situations, it happens that what is needed is not a certain amount of capital (i.e. a fixed amount), but the ability to periodically give away a certain amount. This is especially true for those who pay loans, etc. Rational savings will help here. Get into the habit of recording your income and expenses, analyze how much money you usually spend per week (month), which expenses are really important and what are not, think about whether it is possible to buy something you need cheaper. There are many ways without much damage to the level: these include products in large inexpensive supermarkets, and the use of various kinds of discounts and coupons, and much more. By making sure that you can actually provide yourself with roughly the same standard of living for less money, you will be able to save at least small amounts that may help you achieve your goals.

If the above methods do not work, you can always resort to the help of banks. Of course, a loan is not the best way out in this situation, because before you take it, you need to be sure that you can pay it off. However, in any case, look at the websites of banks and ask what loan programs they offer. Almost all banks issue consumer loans; certain difficulties can only be experienced with an educational loan or a business loan.

Anyone who needs capital to develop a business can try to find an investor. To do this, of course, it is necessary that your business idea is truly bright and extraordinary and guarantees income. As a rule, small businesses look for investors either through friends or at forums and meetings organized for these purposes. In this case, the main thing is to get a competent business plan and successfully present it, since it is through the business plan that the investor will get acquainted with your project.

Video on the topic

Sources:

• Return on equity

Equity capital is a certain set of financial resources of an enterprise, which are formed from the funds of the founders of a given company, as well as the financial results of its own activities. In turn, in any joint stock company, equity capital is called share capital.

Instructions

When determining the book value or accounting value of a company's equity, all its assets and liabilities are taken into account at their cost of origin. In this case, equity is the difference between the book value of all assets and liabilities. This method of calculation is suitable only when the market and obligations between them do not differ very much. If the market value deviates significantly from the underlying book value, then this method of calculation will lead to distortion of the results, as well as to the inadequacy of the assessment of the firm's equity.

Another way to calculate equity capital is to calculate its value according to the rules and requirements that are established by the authorities exercising supervision and control over the activities of the organization. In this case, equity capital is calculated as the sum of its series constituent elements. At the same time, there are different ways calculating equity capital depending on the type of organization (for example, in banks and industrial enterprises).

The algorithm for calculating the size of a bank’s own (regulatory) capital has the following form: RVC = OK + DK-V, where RVC is the amount of the bank’s regulatory own capital;
OK - the value of the fixed capital, reduced by the amount of all unformed reserves for the existing active operations of the bank;
DC is an indicator of the bank's additional capital;
B is prevention.

When calculating the total amount of the value of own regulatory capital, additional capital should in no case exceed the value of the fixed capital. At the same time, the inclusion of certain existing debt in the calculation of equity capital is practically limited to 50% of the amount of fixed capital.

Sources:

• book value of equity is

Enterprise capital can be viewed from several perspectives. A distinction is made between real capital, which exists in the form of means of production, and money capital, which exists in the form of money and is necessary for the acquisition of means of production. It represents a set of sources of funds required for the normal functioning of the enterprise.

In fact, the company's equity capital consists of authorized capital, additional and reserve capital, retained earnings and various special funds. This also includes amounts after 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

Extra capital

Reserve capital

retained earnings

Let's consider example No. 1

Example No. 2

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

The equity capital of an enterprise is its basic platform on which all further business development is built. 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.

In fact, the company's equity capital consists of authorized capital, additional and reserve capital, retained earnings and various special funds. This also includes amounts after 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 current 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 of Section III “Capital and Reserves”. According to this, equity will be equal to the sum of the lines in 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 of the balance sheet. 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.

As the amount of equity capital grows, the investment potential of the company and its financial strength also increase. This important indicator 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.

13. ANALYSIS OF THE FINANCIAL AND ECONOMIC POSITION OF THE ENTERPRISE

Managing the economic activities of an enterprise is the most important condition for achieving positive economic results.

How to determine equity from the balance sheet?

An enterprise is forced every day to perform a huge number of different functions related to maintaining production processes in a normal state, timely provision of all types of resources, making various payments, etc. Therefore, at certain intervals at the enterprise it is necessary to make calculations to determine the achieved economic results.

To disclose one or another aspect of economic activity by an enterprise, they use different kinds analysis, each of which differs in purpose, techniques and other features.

One of these types of analysis is financial analysis, based on ratio analysis.

Financial ratios can be divided into four main categories:

profitability indicators;

solvency (liquidity) indicators;

capital structure assessment indicators;

capital turnover indicators (business activity).

Financial ratios are given in Table 2.

table 2

Financial ratios