Own capital is reflected in the balance sheet section. Own capital - what is this line on the balance sheet? Information on fixed capital in financial statements

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

Let's look at equity capital on 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 the 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.

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 purchased from shareholders” should also be included in equity capital if the organization purchased securities from shareholders.

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 may 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.

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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.

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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 in the form of the difference between the book value of all assets and liabilities. This method of calculation is suitable only when the market and liabilities 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 a number of its constituent elements. At the same time, there are different ways to calculate 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 equity 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.

Equity- this is the totality of all the funds of the company that are in its ownership. The enterprise's own capital is used to form a share of assets. The business entity operates with it when making transactions without restrictions and conditions.

Equity Analysis produced in the FinEkAnalysis program in blocks:

• Analysis and assessment of profitability and profitability as Return on equity, Payback period of equity
• Analysis of business activity as Equity Turnover Ratio, Return on Equity Ratio
• Financial stability score as Equity Concentration Ratio

Net worth formula

Net worth - what it shows

Equity shows what part of the assets is financed with own funds. Its presence and magnitude are one of the most important characteristics of financial stability.

Own capital of the enterprise - diagram

The total equity capital of an enterprise is reflected in the balance sheet in the following main forms:

• other forms of equity (settlements for property when leasing, settlements with participants for the payment of income in the form of interest or dividends, etc.).

Synonyms

Own financial resources

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Equity capital is the amount of authorized, reserve and, as well as targeted financing.

Changes in an entity's equity between the beginning and end of the reporting period reflect increases or decreases during the period. Under conditions of the dominance of the financial concept of capital, a change in the value of net assets indicates a change in the organization’s own capital, i.e. about its growth or decline over the period.

Borrowed capital is loans, borrowings, etc. obligations of the organization to individuals and legal entities.

Own capital of the enterprise

Funds supporting the activities of an enterprise are usually divided into own and borrowed funds.

An enterprise's equity represents the value (monetary value) of the enterprise's property, which is entirely owned by it.

In accounting, the amount of equity capital is calculated as the difference between the value of all property on the balance sheet, or assets, including amounts unclaimed from various debtors of the enterprise, and all liabilities of the enterprise at a given point in time.

The equity capital of an enterprise consists of various sources: authorized or share capital, various contributions and donations, profit, which directly depends on the results of the enterprise's activities. A special role belongs to, which will be discussed in more detail below.

Borrowed capital is capital that is attracted by an enterprise from outside in the form of loans, financial assistance, amounts received as collateral, and other external sources for a specific period, under certain conditions, under any guarantees.

Return on equity

Return on common stock (ROCE) is calculated as the ratio of preferred stock less to common stock. The formula for calculating the indicator is as follows:

ROCE = (net profit - dividends on preferred shares) / annual average value of ordinary share capital

The average annual value of assets is calculated on the basis of the enterprise's balance sheet as half the amount of assets at the beginning and end of the year or as the arithmetic average of the balance sheet values ​​at the end of the quarters included in the reporting year.

Return on Capital Employed (ROCE) is used by financiers as a measure of the return on capital employed by a company.

This is usually necessary to compare the performance of different types of businesses and to assess whether the company generates enough profits to justify the cost of raising capital.

If the company does not have preferred shares and is not obligated to pay dividends, then the value of this indicator is equivalent to ROE.

Return on invested capital (ROIC) This ratio is calculated as the ratio of the company's net operating profit to the average annual total invested capital. The formula for calculating the indicator is as follows:

ROIC = NOPLAT / invested capital * 100%
where NOPLAT is net operating profit less adjusted taxes.

Invested capital is capital invested in the main activities of the company. Only capital invested in the company's main activities should be counted as invested capital, just as the profit considered is profit from the main activities. In general terms, invested capital can be calculated as the sum of core business, net and net other assets (less non-interest bearing liabilities). Another calculation option is that invested funds are considered the sum of equity capital and long-term liabilities. The details of determining the amount of capital invested will depend on the accounting practices and business structure.

The main condition that must be achieved is that the analysis must take into account that and only that capital that was used to obtain the profit included in the calculation. In practice, they often resort to a simplified approach, in which the main activities of the company are not highlighted, and the analysis is carried out on all investments and all income. The error of this assumption will depend on what the company’s non-operating profit will be in the period under review and how large the investment in non-core activities will be. Taking into account possible assumptions, the ROIC formula can be written in other forms:

ROIC = ((net profit + interest * (1 – tax rate)) / (long-term loans + equity)) * 100%
or
ROIC = (EBIT * (1 – tax rate) / (long-term loans + equity)) * 100%

Indicators of the amount of investment are taken according to the average annual value (defined as the amount at the beginning and end of the year, divided in half). In all cases, when calculating this ratio, it is assumed that data from profits and losses is used. If quarterly or other reporting is used in the calculation, the coefficient must be multiplied by the number of reporting periods in the year.

Return on total assets (ROTA) is usually calculated as the ratio of net profit to average assets. The advantages of using this coefficient are clear: maximizing ROTA forces managers to increase, reduce costs and non-productive expenses (attributable to profit), and reduce the amount of assets (by getting rid of non-productive assets, reducing receivables and payables). Calculated using the formula:

ROTA = EBIT / enterprise assets
where EBIT is profit minus taxes and interest (operating profit).

The ROTA indicator is similar to ROA with the only difference that when calculating ROTA, operating income is used rather than net income.

One of the invisible but significant disadvantages of ROTA at first glance is the deterioration of this indicator as a result of attracting borrowed capital. In addition, focusing on this indicator does not contribute to optimizing the structure of assets and does not take into account the seasonal specifics of a particular type of activity.

The ROTA indicator is especially useful to use as an additional indicator for comparing the assessment of the efficiency of using the assets of holdings with a diverse assortment or vertical. In this case, it is possible to assess whether investments in a given asset (machines, premises, stocks of raw materials in a warehouse) for the production of certain products bring the required return, and to form an optimal set of assets for the production of the optimal assortment.

Return on equity (ROE) ratio is the most important for valuing a company in the long term. It shows how much profit each ruble invested in the company’s business by its owners brings.

The starting point for analyzing the efficiency of an enterprise can be a comparison of ROE with the bank rate. If the ratio of net profit to equity is lower than or equal to the return on bank deposits, then the company's business is not effective. ROE is often used to compare similar companies in the same industry. Comparison of the efficiency of using equity capital shows the quality of work of the management apparatus. Calculated using the formula:

ROE = (net profit / equity) * 100%

Net worth is the share of ownership indicated on the balance sheet that shareholders can claim. Represents the total value of assets minus debt. ROE can also be presented as follows:

The ratio shows that the correct use of borrowed funds allows increasing shareholder income due to the effect of financial leverage. This effect is achieved due to the fact that the profit received from the company’s activities is significantly higher than the loan rate. By the size of the financial leverage, you can determine how the funds raised are used - for the development of production or for patching holes in the budget. Obviously, with good company management, the value of this indicator should be greater than one. On the other hand, too high a leverage ratio is also bad as it can be associated with high risk as it indicates a high proportion of debt in the asset structure. The higher this share, the greater the likelihood that the company will be left without any net profit if it suddenly encounters any even minor difficulties.

The company's return on assets (ROA) shows how many monetary units of net profit are generated by each unit of assets available to the company. Allows you to evaluate the quality of work of its financial managers. Calculated using the formula:

ROA = ((net profit + interest payments) * (1 – tax rate)) / enterprise assets * 100%

The numerator of this formula reflects the entire amount before interest on the loan is paid. Since in accounting, payments used to service loans are deducted from taxable profit, the reverse operation is performed - the amount of deducted interest is added to the amount of net profit, taking into account.

Net Profit is the difference between the revenue received and all the company's expenses for the corresponding period. Takes into account the cost of paying taxes.

Enterprise assets (Assets) - a set of property and property belonging to an enterprise, firm, company (buildings, structures, machinery and equipment, inventories, bank deposits, securities, patents, property with a monetary value). To carry out calculations, the average annual value of the company's assets is used (the amount of assets at the beginning and end of the year, divided in half).

Gross profit margin (GPM) is another name for this ratio - Gross margin ratio. Demonstrates the share of gross profit in the enterprise. Calculated using the formula:

GPM = GP/NS = Gross Profit/Total Revenue

Operating profit margin (OPM) – demonstrates the share of operating profit in sales volume. Calculated using the formula:

OPM = ОP/NS = Operating profit/Total revenue

Net profit margin (NPM) – shows the share of net profit in sales volume. Calculated using the formula:

NPM = NI/NS = Net Profit/Total Revenue

Coefficients assessing the return on capital invested in an enterprise. The calculation is made for an annual period using the average value of the relevant items. For calculations for a period of less than one year, the profit value is multiplied by the appropriate coefficient (12, 4, 2), and the average value for the period is used. To obtain percentage values, as in previous cases, it is necessary to multiply the coefficient value by 100%.

Return on current assets (RCA) - demonstrates the company's ability to provide a sufficient amount of profit in relation to the company's working capital used. The higher the value of this ratio, the more efficiently working capital is used. Calculated using the formula: NI/CA = Net profit/Current assets.

Capital is one of the most used categories in economics. It is the basis for the creation and development of an enterprise and, in the process of operation, ensures the interests of the state, owners and personnel. Any organization conducting production or other commercial activities must have a certain capital, which is a combination of material assets and funds, and costs for the acquisition of rights and privileges necessary for the implementation of its economic activities.

If we consider the interpretation of capital from the point of view of various economic disciplines, we can notice some ambiguity. For example, in his work “” shows that the capital of an organization is its property. However, according to the Preface to International Accounting Standards published by the International Accounting Standards Board in November 1982, equity is the difference between assets and liabilities.

For its purposes, financial management reflects the concept of capital from two sides. On the one hand, the capital of an enterprise characterizes the total value of funds in monetary, tangible and intangible forms invested in the formation of its assets. This characterizes the direction of investment. On the other hand, if we consider sources of financing, it can be noted that capital is the opportunity and set of forms of mobilizing financial resources to make a profit.

Considering the economic essence, it should be noted such characteristics as:

1. The capital of the enterprise is basic. In the system of factors of production (capital, land, labor), capital has a priority role, because it combines all factors into a single production complex.
2. Capital characterizes the financial resources of an enterprise that generate income. In this case, it can act in isolation from the production factor in the form of invested capital.
3. Capital is the main source of wealth formation for its owners. Part of the capital in the current period leaves its composition and ends up in the “pocket” of the owner, and the accumulated part of the capital ensures the satisfaction of the needs of the owners in the future.
4. The capital of an enterprise is its main measure. This capacity is represented, first of all, by the enterprise’s own capital, which determines the volume of its net assets. Along with this, the amount of equity capital used by the enterprise simultaneously characterizes the potential for it to attract borrowed funds, ensuring additional profit. In combination with other factors, it forms the basis for assessing the market value of the enterprise.
5. The dynamics of an enterprise's capital is the most important indicator of the level of efficiency of its economic activities. The ability of equity capital to self-expand at a high rate characterizes the high level of formation and effective distribution of the enterprise’s profit, its ability to maintain financial balance from internal sources. At the same time, a decrease in equity capital is, as a rule, a consequence of ineffective, unprofitable activities of the enterprise.

The capital of an enterprise is characterized by a variety of types and is systematized into the following categories:

1. According to the ownership of the enterprise, equity and borrowed capital are distinguished. Equity capital characterizes the total value of the enterprise's funds owned by it and used by it to form a certain part of the assets. This part of the asset, formed from the equity capital invested in them, represents the net assets of the enterprise. Equity capital includes sources of financial resources that are different in their economic content, principles of formation and use: authorized capital, additional capital, and reserve capital. In addition, the equity capital, which a business entity can operate without reservations when making transactions, includes retained earnings; special purpose funds and other reserves. Own funds also include gratuitous income and government subsidies. The amount of the authorized capital must be determined in the charter and other constituent documents of the organization registered with the executive authorities. It can be changed only after making appropriate changes to the constituent documents.

Extra capital includes the value of property contributed by the founders (shareholders) in excess of the registered amount of the authorized capital; amounts resulting from changes in the value of property during its revaluation; other income to the enterprise's own capital.

Reserve capital- this is part of the equity capital allocated from the organization’s profits to cover possible damages and losses. The amount of reserve capital and the procedure for its formation are determined by the legislation of the Russian Federation and the organization’s charter.

retained earnings– the main source of accumulation of property of an enterprise or organization. This is the part of the gross profit remaining after paying income taxes to the budget and diverting funds from profits for other purposes.

Special purpose funds characterize net profit aimed at the production development and expansion of the enterprise, as well as for social events.

Other reserves include reserves that are created at the enterprise in connection with upcoming large expenses included in the cost and. Subsidies and revenues are generated as a result of special allocations from the budget, other organizations and individuals.

All own funds, to one degree or another, serve as sources of funds used by the organization to achieve its goals.

Two main components can be distinguished as part of equity capital: invested capital, i.e. capital invested by owners in the enterprise; and accumulated capital, i.e. capital created in a business in excess of what was originally advanced by the owners. Invested capital includes common and preferred shares, as well as additional paid-in capital (in excess of the par value of shares). This group usually includes valuables received free of charge. The first component of the invested capital is represented in the balance sheet by the authorized capital, the second by additional capital (in terms of income received), the third by additional capital (in terms of property received free of charge) or a social fund.

The accumulated capital is reflected in the form of items arising as a result of the distribution of net profit (reserve capital, retained earnings, other similar items). Despite the fact that the source of formation of individual components of accumulated capital is the same - retained earnings, the goals and procedure for the formation, directions and possibilities of using each of its articles are significantly different.

All items of equity capital are formed in accordance with the legislation of the Russian Federation, constituent documents and accounting policies. Current legislation determines the obligation of a joint stock company to create two funds - a statutory and a reserve. The legislation does not contain any other mandatory list of funds that the company must create, as well as standards for contributions to them. Issues regarding the use of reserve and other funds of the company fall within the exclusive competence of the board of directors of the company.

Borrowed capital of a company characterizes funds or other property assets raised to finance the development of an enterprise on a repayable basis. Sources of borrowed capital can be divided into two groups - long-term and short-term. Long-term in Russian practice include those borrowed sources whose repayment period exceeds twelve months. In foreign practice, borrowed funds issued for a period of one to five years are considered medium-term. Short-term borrowed capital includes loans, borrowings, as well as liabilities with a maturity of less than one year; accounts payable and receivable.

In turn, the activity of these non-residents, global investors, is largely related to the situation in their developed capital markets. When profits fall in the markets, venture projects for placing capital in emerging markets begin to wind down, i.e. The ups and downs of developed markets are reflected in the behavior of emerging markets. Moreover, there is a multiplier effect associated with a unique one that arises due to the lower capitalization of the developing market. The relationship between the dynamics of developing and developed markets is easy to see by comparing charts, for example, of the Russian and American stock indices (see figure). In the figure, the black line shows the dynamics of the American Dow Jones Industrial Average, and the gray line shows the corresponding Russian indicator of the Russian Trading System (RTS).

We can conclude that the dispersion of an emerging market can be determined and explained by the dispersion of a developed market (systematic risk) and the peculiarities of the dynamics of a given developing market (unsystematic risk).

Let's consider how a global non-resident investor acts under these conditions:

Firstly, the risk-free investment rate on the parent market is available to him, so he takes it as the base rate of return Rf.

Secondly, if he behaves rationally, then he diversifies the unsystematic risk of a particular, for example Russian, market by creating a well-diversified international portfolio.

Therefore, when investing money in Russian assets, he will take into account only the systematic risk of the developing market relative to the parent one, i.e. coefficient b of the Russian market. In other words, Russian average market returns should not be determined by historical observations of unrepresentative domestic indices, but by the equation:

Rm(e) = Rf + bem,
where Rm(e) is the average market profitability of the Russian (developing) market;
Rf - risk-free rate of the global market; bem is the systematic risk of the developing market relative to the parent one; Rm(m) is the average market return of the parent market.

According to our calculations, currently the Rf rate (in dollars) is at the level of 5.1% per annum, and the market premium for the risk of investing in shares of the Russian Federation, determined according to the methodology outlined above, is 22.3% per annum (in dollars).

It can be argued that this approach can be used not by a domestic, but by a global investor, since for a domestic investor these profitability requirements will be different. But remember who the investors are in an emerging market and where domestic investors ultimately get their capital, and then it becomes obvious that two groups of investors with different requirements for profitability are unlikely to appear in the market.

In addition, the duality of requirements means that different investors will value the same assets differently. An arbitrage situation will arise, which, according to one of the basic axioms of financial theory, cannot be stable. Our model is an equilibrium one and considers the situation after it has stabilized.

Based on the techniques described above, we received the average market premium for the risk of investing in Russian stocks. In addition, we calculated unleveraged coefficients b0, reflecting the relative risk of individual types of activities. We intend to review these estimates periodically - no more than once a quarter due to their high stability.

In addition, minor amendments were made to the formula for coefficient b1 due to the peculiarities of Russian profit taxation:

B1 =1 + D/E(1 - lT),
where l is the share of payments exempt from income tax in the total volume of interest payments of the company - .

These data and models make it possible to justify the cost of equity capital of a corporation or a separate economically isolated project in almost any sector of the Russian national economy.

AN EXAMPLE OF APPLYING THE CAPM MODEL IN A DEVELOPING STOCK MARKET TO CALCULATE THE VALUE OF A CORPORATION'S OWN CAPITAL

For example, let's take a certain company, for example, a car plant.

The coefficient b0 for mechanical engineering is 0.37. For this company, the debt to equity ratio D/E is about 0.85. The tax rate for Russian companies is 35%. The share of payments exempt from income tax in the company's total interest payments is 0.7. Let's determine the coefficient b:

B = b0
Let's substitute the values ​​into the formula:
b = 0.37 = 0.607.

The required return on equity for the company will accordingly be equal to:

E(r) = 5.1% + 0.60722.3% = 18.64% = 19% per annum, dollars.

Thus, the cost of equity capital of a Russian company can be determined using the CAPM model of the cost of capital (long-term) assets.

To obtain the parameters of this model, one cannot limit oneself to statistical data of the Russian market only, since more or less reliable estimates of these parameters can be obtained only on the basis of an analysis of the statistical dependence of the developing Russian stock market on trends in the global market of economically developed countries of the world.

Own capital accounting

The formation of an enterprise's own funds occurs even before its establishment, when the authorized capital of the enterprise is formed, which is the main source of its own funds.

Authorized capital is the cost of fixed and working capital contributed by the founders when creating an enterprise for the activities specified in the constituent documents. The volume of the authorized capital characterizes the amount of invested funds, therefore the increase in the enterprise’s funds as a result of its effective activities does not affect the volume of the authorized capital. Clarification or change in the amount of the authorized capital can only occur on the basis of legally formalized and entered into force changes in the constituent documents of the enterprise.

The authorized capital is determined as follows:

Subscribed capital (the amount for which shares were subscribed at par) – in joint stock companies;
declared capital (capital shown in constituent documents) – for enterprises that are not joint-stock companies;
paid-up capital (the amount actually received into the authorized capital as contributions of participants, after the completion of the contributions of the founders, it should be equal to the subscribed or declared capital).

Accounting for the authorized capital is carried out on the passive fund account 85 “Authorized capital”, the credit account for this account shows the amount of registered (declared) capital. The debit of this account shows a decrease in the authorized capital to cover losses at its expense, the exit of one of the participants from the company or the complete liquidation of the enterprise. The credit of account 85 reflects the increase in the authorized capital.

After registering an enterprise and receiving a registration certificate, the following entry is made in accounting:

“D-t sch. 75-1 “Settlements with founders for contributions to the authorized (share) capital” - the amount of registered capital,
K-t sch. 85 “Authorized capital” – the amount of registered capital.”

The posting shows the presence of the enterprise's authorized capital and the debt of the founders who have not yet made their contributions, for the accounting of which active sub-account 1 “Settlements with founders for contributions to the authorized (share) capital” of active-passive account 75 “Settlements with founders” is used.

After depositing 50% of the amount of registered capital in the enterprise D-t account. 51, Kt. 75-1, the company receives a permanent certificate of registration instead of a temporary one.

Contributions to the authorized capital can be made in the form of fixed assets, intangible assets, sums of money in rubles and foreign currency, in the form of materials and other valuables. The debt, as the founders make contributions, is written off from the credit of account 75-1:

Dt sch. 01, 04, 10, 50, 51, etc.,
K-t sch. 75-1.

The following accounts can be debited:

Account 01 “Fixed assets”, which reflects the received fixed assets;
account 04 “Intangible assets” (if intangible assets are invested in the authorized capital);
account 10 “Materials”, if materials are included in the authorized capital;
account 12 “Low value and wearable items”, if the participant contributed them;
accounts 50 “Cash”, 51 “Current account”, 52 “Currency account” (if the deposit is cash);
account 41 “Goods”, if the contribution received goods intended for resale.

Participants of the enterprise can change the size of the authorized capital by making such a decision. Then, after legal registration of the change in the size of the authorized capital, the corresponding entries are drawn up, adjusting the amount of the authorized capital in account 85:

Dt sch. 75 – amount of reduction in authorized capital,
K-t sch. 85 – amount of reduction in authorized capital;
or:
Dt sch. 85 – amount of increase in authorized capital,
K-t sch. 75 – amount of increase in authorized capital.

A decision to change the authorized capital may appear in such cases. For example, the authorized capital can be increased by additional contributions from the founders or the admission of new participants, and decreased by the return of part of the contributions, excluding someone from the list of participants. In joint stock companies, the size of the authorized capital is regulated by additional issue or cancellation of part of the shares.

Currency and foreign currency values ​​are valued at the official exchange rate of the Central Bank of the Russian Federation at the time of depositing the specified values.

The valuation of currency and other property contributed as contributions to the authorized capital may differ from their valuation in the constituent documents. In this case, the difference is written off to account 87 “Additional capital”. A positive difference in assessments is reflected in the debit of the property, currency and currency valuables accounts and the credit of account 87, and a negative difference is reflected in the reverse. This procedure for writing off the difference in prices and exchange rate valuation allows you not to change the share of the founders in the authorized capital specified in the constituent documents.

Property transferred for the use and management of an organization, the ownership of which remains with shareholders and investors, is assessed by the amount of rent for this property, calculated for the entire period of its use in the organization, but not more than the period of existence of this property.

Accounting for additional capital

External sources of formation of own funds include additional share or share capital, which is attracted through additional cash contributions to the authorized capital or additional issue of shares.

Own capital management should be carried out on the basis of a certain financial policy of the enterprise. It is usually carried out in three stages.

1. Analysis of the existing potential of own financial resources: volume and dynamics in the previous period; compliance of the growth rate of equity capital with the growth rate of assets and sales volume; proportions of the ratio of external and internal sources of formation of own financial resources, their cost; the state of the autonomy and self-financing coefficient and their dynamics.

The result of this stage should be the development of reserves for increasing equity capital.

2. Determination of the need for equity capital. Based on well-known formulas and initial information, calculations of the need for equity capital are made:

SKplan = KUDck – Pr + A,
where SK plan is the additional need for equity capital for the planned period;
Ku – total capital;
d ck – the share of equity capital in its total amount;
Pr – the amount of reinvested profit in the planning period;
A – depreciation fund at the end of the planning period.

All indicator values ​​used are essentially planned.

Equity is the total value of an organization's funds owned by it and used to form a certain part of its assets. Equity is the portion of a company's capital remaining at its disposal after deducting all liabilities.

1. You can easily determine the amount of equity capital from the balance sheet. 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”.

2. Let us consider in more detail 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 purchased from shareholders” should also be included in equity capital if the organization purchased securities from shareholders.

3. Additional capital (line 420) is a part of the enterprise’s own 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 may be reflected as additional capital.

4. Reserve capital (line 430) is a part of equity capital that is allocated from the profit of the enterprise to cover possible losses and damages. 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).

5. Remember that the main source of accumulation of enterprise property is retained earnings (line 470). It is equal to the difference 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 in the balance sheet as a separate line.

Sources of equity capital

Internal sources of equity capital are formed in the process of economic activity and play a significant role in the life of any enterprise, since they determine its ability to self-finance. An enterprise that is able to fully or significantly cover its financial needs from internal sources receives significant competitive advantages and favorable opportunities, and reduces its risks.

The main internal sources of financing of any commercial enterprise are net profit, depreciation charges, sales and rental of unused assets, etc.

In modern conditions, enterprises independently distribute the profits remaining at their disposal. Rational use of profits involves taking into account factors such as plans for the further development of the enterprise, as well as respecting the interests of owners, investors and employees. In general, the more profits are used to expand business activities, the less the need for additional financing. The amount of retained earnings depends on the profitability of business operations, as well as the dividend policy.

Thanks to this source, it is possible to increase the financial stability of the enterprise and maintain control over the activities of the enterprise. However, it is difficult to control it from external factors: changes in demand, prices, market, etc.

Another important source of self-financing for an organization is depreciation charges.

All property of the organization (“functioning capital”) consists of non-current and current assets (fixed and working capital).

Functioning (active) capital includes:

Main capital:

Fixed assets;
intangible assets;
financial investments;
unfinished long-term investments.

Working capital:

As a result of studying theoretical developments in the field of financial analysis, valuation, financial management, accounting and practical data obtained by both foreign and domestic researchers, as a complement to the above indicators in order to obtain comprehensive and objective information about the value of equity capital, we have proposed an analytical indicator of trends in changes in the value of equity capital - net liabilities per share. This indicator is included in a number of combined economic indicators and represents a synthesis of the cost and coefficient approach to assessing the value of equity capital. This indicator is based on the theory of pure liabilities developed by prof. I.N. Rich. The basic equation of the theory is formalized as follows: Cash = Net liabilities.

The presented indicator is close in content to cash flow per share. The significance of this indicator follows from the theory of maximizing shareholder wealth. Using indicators of earnings per share, cash flow per share, or net asset value per share to evaluate a company's performance does not provide shareholders with relevant information about the performance of the enterprise. In turn, the “net liabilities per share” indicator makes it possible to assess the return on equity capital through the level of profitability, as well as the increase in property in value terms and the amount of funds to be distributed among the owners. In other words, the value of this indicator lies in the fact that net liabilities “characterize the amount of obligations to the owners, taking into account future expenses, as well as taking into account the repayment of all obligations associated with the use of property.” The use of the “net liabilities per share” indicator does not mean a refusal to use other indicators, as well as the presented cost methods for assessing the cost of capital. Here you need to have a clear understanding of the purposes of use and the boundaries of application of each of them, since various directions and tasks for assessing the value of equity capital determine the use of one or another indicator or method. All of the above indicators are significant, interconnected and complement each other in a comprehensive assessment of companies. It should be noted that the use of a system of derivative balance sheets will significantly increase their analytical value for investors, owners, and managers.

Calculation of net worth

To increase your equity capital, I advise you to use the following operations:

Revaluation of fixed assets - revaluation of a group of similar fixed assets at current (replacement) cost is carried out no more than once a year. It is carried out on the first day of the reporting year, and its results are recorded in the balance sheet only in the reporting year (and not at the end of the previous year). It should be taken into account that an increase in the residual value of fixed assets leads to an increase in organizations, but is not included in the income tax base;
increase the authorized capital;
Contributions of founders to the property of the company are made without changing the authorized capital. In this case, repayment of invested funds (for example, a loan) is not expected, and funds contributed by a participant or shareholder to increase net assets are not subject to income tax (clause 3.4, clause 1, article 251 of the Tax Code of the Russian Federation). It is better to use money rather than property as a contribution, so that the transferring party (if it is an organization and not an individual) does not have a VAT base on the gratuitous transfer of property.

Don't forget that there is a concept of a maximum allowable share of equity, and too much equity can be harmful to your business.

Equity turnover

The formula for calculating the indicator looks like this:

OBsk=BP\SK

Equity audit

When checking you need to install:

Did the founders contribute their share in a timely manner, and in what form?
- Correctness of accrual of income to founders and taxes associated with this.
- Were changes made to the constituent documents (if any) in a timely manner?
- The size of the authorized capital and the share of each founder.
- Correct execution of documents on contributions to the authorized capital.
- Accounts that an economic entity has the right to open in banking institutions.
- Does the charter provide for the creation of reserve and other funds?

Does an economic entity have the right to create branches and other structural divisions on the territory of the Russian Federation and abroad, allocated to an independent balance sheet. Availability of a license to carry out activities subject to licensing in accordance with current legislation.

The procedure for distributing net profit remaining at the disposal of an economic entity at the end of the year after making mandatory payments.

Correct calculation of income of founders and shareholders and withholding of income tax.

Correct execution of accounting documentation and preparation of accounting entries for the formation of the authorized capital (D75 K85; D01, 50, 51, 52, 10, 12, K75)

The auditor needs to pay attention to the following points:

When establishing a JSC, all its shares must be placed among the founders. Shares can be ordinary or preferred. The par value of the issued preferred shares should not exceed 25% of the authorized capital. All shares of the company are registered.

The minimum capital of an OJSC must be at least 1000 minimum wages established by the Federal Law on the date of registration of the company, and for a closed company - at least 100 minimum wages.

The company's shares upon its establishment must be fully paid within the period specified by the company's charter, while at least 50% of the company's capital must be paid by the time of registration of the company, and the remaining part - within a year from the date of its registration. Additional shares of the company must be paid for within the period determined in accordance with the decision on their placement, but no later than 1 year from the date of their acquisition (placement).

Entries under Account 85 are made only in cases of increase or decrease of the Criminal Code.

The actual receipt of deposits of the founders is carried out according to K 75 “Settlements with founders” in correspondence with accounts for accounting: cash (accounts 50,51,52), material assets (accounts 01,07,08,10,11,12,41), Intangible assets (account 04), securities (accounts 06.58).

When an enterprise is provided with the right to use buildings, structures and equipment as a contribution, entries D 04 K 75 are made. At the same time, the specified buildings, structures and equipment are accepted into off-balance sheet account 001 “Leased fixed assets”.

The capitalization of property provided in kind to the ownership of the enterprise on account of contributions to the management company (in payment for shares) is carried out at a valuation determined by agreement of the founders.

The accrual of income from participation in the enterprise is reflected in the entry D 88 K 75. If there is no or insufficient profit to pay income, D 86 K 75 is reflected.

Change in equity

The logic for generating information in the statement of changes in equity is as follows.

Generating a report on changes in equity

Own capital at the beginning of the year

Owner's Investment
+ Net profit
+ Income and expenses attributable directly to capital (other comprehensive income)
- Seizures of owners

Equity at the end of the period

The content of the information presented in this report according to American and international standards is generally identical. Differences exist in the terms used, the composition of individual items, which is due to different accounting rules (for example, the result of a change in accounting policy according to American standards is reflected in the income statement, and according to international standards it can also be reflected as an adjustment to the opening balance of retained earnings), the degree of detail (Under American standards, the statement of comprehensive income may be included in the income statement or presented separately, so the statement of changes in equity may only include totals).

For large companies, the most convenient is the tabular form of the report, in which the columns represent equity items reflected in the balance sheet, and the rows represent the corresponding changes in these items.

International standards pay great attention to the statement of changes in equity (1) due to the importance of this information for users. International standards do not require the preparation of a statement of comprehensive income, so the statement of changes in equity is the only source of information about all changes that have occurred in equity during the period.

This report should present information on net profit/loss for the reporting period, separately provide information on each type of income and expense attributable directly to capital, and reflect the total amount of adjustments to the opening balance of retained earnings. In addition, the report itself or its notes must disclose information about investments and withdrawals of owners, the balance of retained earnings at the beginning and end of the reporting period and all changes during the period, the opening and closing balance of each component of equity (common and preferred shares , additional capital, etc.) and their changes over the period.

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Equity capital is the property of an enterprise that is used to form assets. By analyzing the indicator, financial directors, business owners, and investors draw conclusions about the company’s performance. We will tell you what is included in the organization's equity capital, how to calculate it on the balance sheet and how to analyze the obtained figures.

Own capital - what is it?

Equity capital is the property of an organization owned by it, which is used to form assets.

Foreign sources indicate that the amount of equity capital consists of:

• paid-up capital (received from investors in exchange for shares);
• donated (buildings, land and other material assets donated free of charge);
• retained earnings of the company minus obligations.

Equity Analysis

When analyzing equity capital, it should be taken into account that its volume must be greater than zero. If this requirement is not met, this indicates that the enterprise has an excessive credit load and low indicators of highly liquid assets.

If a company seeks to be attractive to new investors, then management must ensure that the amount of equity capital is greater than the authorized capital. This ratio will ensure self-sufficiency, and will also make the possibility of an influx of new investments more realistic.