The main sources of funds to finance the activities of the enterprise. Sources of financing for the company's activities. Advantages and disadvantages of various sources of financing the company's activities
The finances of an enterprise are the sum of all funds, both internal and external, that are in full use of the company and are used by it as a means of fulfilling debt obligations, aimed at current expenses and expansion of the enterprise.
When money is present required quantity, are used effectively – this is the key successful business, its stability, liquidity and solvency.
The problem of choosing the most correct and best source of finance for the operation of an enterprise is attracting more and more attention from business owners.
A source of financing is a stable, functional way of obtaining funds and a list of economic entities that can provide such funds. It is important to choose the most profitable source of finance that would be suitable for a specific project and bring the greatest dividends.
Financing is divided into the following types:
- Internal sources receiving funds;
- External sources;
- Mixed type.
Internal sources
The first and key sources of obtaining finance for the activities of an enterprise can be considered the organization’s own funds. They contain:
- Initial capital
- Finances accumulated during the operation of the enterprise, formed internal reserve funds
- Other investments of private and legal entities
The capital of an enterprise is formed at the start of the creation of an organization, when its initial capital is formed - the total funds of the founders of the business invested in the property of the company to ensure the necessary operational scope. Such capital is also called authorized capital and without it the company will not only be able to be created, but also to fully function in the future.
The ways of forming such capital depend on the legal form of the organization chosen by the founders. However, regardless of this, all investments made in authorized capital, are further considered the property of the enterprise, and the investor cannot lay claim to them. Thus, in a situation when a company is liquidated or an investor wants to leave the founders, he is compensated only for his share of the remaining property, and the invested assets are not returned.
Where do these funds go? These are raw materials, wages for workers, energy resources, everything needed to produce the goods and services requested by the consumer. He, in turn, pays for the final product, after which the invested funds are returned to the company’s accounts. Next, funds for the needs of the organization are deducted, and the remaining money is considered the profit of the organization.
The amount of profit is associated with the fulfillment of certain conditions, the key of which is the ratio of income and expenses. However, the legislative framework contains some procedures regulating profits, for example, the procedure for assessing asset depreciation and investments in statutory funds.
So, profit is the primary resource for cash reserves. Such funds are needed to cover sudden loss or loss, they provide certain insurance against unforeseen circumstances. How to form a reserve is determined by the regulatory and statutory acts of the enterprise, as well as its organizational and legal form.
Savings and social funds are based on profits and are invested in: wages paid in excess of the established one, bonuses, material aid, compensation for housing, meals, transport, VHI policies for employees.
In addition to such reserves, additional capital can also be included in the capital of an enterprise. Its formation comes from various sources, such as:
- Income from shares issued by the enterprise and sold at a high price;
- Funds resulting from the revaluation of the enterprise’s own property;
- Exchange rate differences;
Additional capital can be used as a means to increase the authorized capital; repayment of debt and monetary losses during the calendar year; distributed among the owners of the organization.
The sinking fund also refers to the internal sources of financing of the enterprise. It is the monetary expression of depreciation of funds and property assets and is considered a resource for financing both normal and expanded production.
Both external and internal sources can also include targeted capital investments from the budget, from superiors and companies. Subsidies and subventions are especially highlighted.
The first is funds from the budget issued to a second party on the basis of equity financing.
The second is budget funds provided for a specific targeted expenditure, without the need to return them.
The main feature of targeted support is that such money can only be used in specifically specified areas and in accordance with the accompanying documentation. Such funds become part of the organization's capital.
External sources
There are not enough own funds for the full functioning of the enterprise. There are several reasons for this, for example, the timing of repayment of debts, as a rule, differs from the receipt of funds from sales. In addition, funds may not be sent on time, and various force majeure events may occur. This also includes inflation (when depreciated funds cannot cover the cost of the necessary resources to continue the production process), the growth of the enterprise itself, the creation of branches and/or subsidiaries. In such situations, the enterprise turns to external sources of funds.
Borrowed funds are considered a liability and are divided into short-term and long-term, which is associated with repayment periods. The latter, in turn, are divided into loans (repayment period of a year or more) and other liabilities. Short-term liabilities include loans for a period of less than 12 months and debts on loans from suppliers, contractors, etc.
One of the most important external sources financing is considered to be a loan issued by a banking institution. Previously, high interest rates did not allow many organizations to use lending as a source of funds, since it was beyond their means. However, at the moment, this method has become available to companies. Foreign banking institutions, in particular, offer lower interest rates and loan repayment options, which poses serious competition to Russian banks.
Lending is one of the sources of financing
Please note that loans can only be issued by licensed financial institutions.
When receiving a loan, agreements are established between the recipient and the bank contractual relationship. An agreement, or banking contract, legitimizes the process, establishes all the nuances and, as a rule, has a standard form.
As opposed to credit as an external source of financing, in Lately, leasing is in favor. Leasing is a form of rental of almost any equipment or machinery, which may also provide for the transfer of ownership. Sometimes, when concluding a leasing agreement, it is possible to agree on more favorable conditions. You can always negotiate with a leasing company a lease repayment period that is convenient for the company; leasing requires fewer documents to complete and therefore takes less time than a loan.
In addition to various forms of loan obligations, government sponsorship programs should be mentioned. The state implements such programs in those sectors that are of interest to it. However, this type of financing has certain difficulties, for example, the enterprise must qualify for the program according to the specified parameters, which can be difficult due to their extensive list.
Securities are also a unique way of external financing of an organization. In this way, it is possible to attract large capitalists, and the company will also receive a possibly small but guaranteed income. Thus, one cannot count on the issue of shares as a permanent and main source of income, but it will definitely help to establish relationships with companies whose investments and experience can be useful to the company.
Pros and cons of external and internal sources
Internal sources, advantages
- Easy scheme for raising funds, no need for additional permissions from other parties
- There are no additional interest payments
- Limited amount of funds, hence fewer opportunities for expansion and investment
- There is no increase in funds for invested monetary resources due to loans
External sources, advantages
- Unlimited amount of funds received
- Increasing the company's potential while modernizing it technical base, its development, growth
- Hence the increasing profits and increased profitability in general
- The more credit obligations an organization has, the less it financial stability, higher risk of bankruptcy
- Interest payments on loans reduce total profit
- Obtaining an external source of financing involves various bureaucratic difficulties and meeting the conditions set by the bank.
NIZHNY NOVGOROD INSTITUTE OF MANAGEMENT AND BUSINESS
Department of Finance
Course work
by discipline
Financial management
“Sources of financing of the organization, their structure and optimization”
Completed by: student full-time training,
4 courses, specialty "Finance and Credit", FEF
Checked:
Nizhny Novgorod, 2010
Introduction………………………………………………………………………………….3
Chapter 1. Sources and methods of financing the organization’s activities..5
Chapter 2. Management of the organization’s own and borrowed capital…….16
Chapter 3. Optimization of the structure of funding sources entrepreneurial activity…………………………………………..27
Conclusion………………………………………………………………………………...32
List of sources and literature used………………………….34
Applications
Introduction
Sources of financing are functioning and expected channels for obtaining financial resources, as well as a list of economic entities that can provide these financial resources. The basis of the project financing strategy is to develop financing schemes based on the individual characteristics of the project and the factors influencing it.
When choosing sources of financing for an enterprise, it is necessary to solve five main problems:
· determine short- and long-term capital needs;
· identify possible changes in the composition of assets and capital in order to determine their optimal composition and structure;
· ensure constant solvency and, therefore, financial stability;
· use own and borrowed funds with maximum profit;
· reduce the cost of financing business activities.
Relevance of this work The problem is that business managers are currently faced with the problem of choosing a source of financing.
the main objective course work consists in studying the main sources of financing, their types, features.
The object of research for writing this work is sources of funding.
When writing this course work, the following tasks were set:
1. Consider the main sources of financing, their essence and types;
2. Study the main methods of financing
3. Consider the financing process using the example of a real enterprise.
The work has a traditional structure and includes an introduction, a main part consisting of 3 chapters, a conclusion and a bibliography.
Chapter 1. Sources and methods of financing the organization’s activities.
Financing the economic activities of an enterprise is a set of forms and methods, principles and conditions for financial support for simple and expanded reproduction.
When choosing sources of financing for an enterprise, it is necessary to solve five main problems:
Determine short- and long-term capital needs;
Identify possible changes in the composition of assets and capital in order to determine their optimal composition and structure;
Ensure continued solvency and, therefore, financial stability;
Use your own and borrowed funds with maximum profit;
Reduce the cost of financing business activities.
Organizational forms of financing :
Self-financing (retained earnings, depreciation, reserve capital, additional capital, etc.).
Equity or equity financing (participation in the authorized capital, purchase of shares, etc.).
Debt financing (bank loans, bond placement, leasing, etc.).
Budgetary financing (loans on a repayable basis from the federal, regional and local budgets, appropriations from budgets of all levels on a gratuitous basis, targeted federal investment programs, government borrowing, etc.).
Special forms of financing (project financing, venture financing, financing by attracting foreign capital).
The initial source of financing for any enterprise is authorized (share) capital (fund), which is formed from the contributions of the founders. The specific methods of forming the authorized capital depend on the organizational and legal form of the enterprise. The minimum amount of the authorized capital on the day of registration of the company is:
In a limited liability company (LLC) - 100 minimum wages (minimum wage). Federal Law of June 19, 2000 No. 82-FZ “On minimum size wages” the minimum wage is calculated at 100 rubles;
In a closed joint-stock company (CJSC) – 100 minimum wages;
In an open joint-stock company (OJSC) - at least 1000 minimum wages.
The founders of a joint-stock or other company are required to fully contribute the authorized capital during the first year of activity.
The sources of formation of the enterprise's own financial resources are divided into external and internal sources. Internal sources include profit remaining at the disposal of the enterprise, depreciation charges from its own fixed assets used , other internal sources of financial resources. External sources include attracting additional share or equity capital, and receiving gratuitous financial assistance by the enterprise.
Structure equity
retained earnings is a reinvested source of own funds for replacing equipment and new investments.
The profit of an enterprise depends on the ratio of income received as a result of its activities with the expenses that provided these incomes. Highlight gross profit, sales profit, operating profit, profit before tax (according to accounting data), taxable profit (according to tax accounting), undistributed (net) profit of the reporting period, reinvested (capitalized undistributed) profit.
The profit remaining at the disposal of the organization is a multi-purpose source of financing its needs. However, the main directions of profit distribution are accumulation and consumption, the proportions between which determine the development prospects of the enterprise.
The formation of accumulation and consumption funds, as well as other monetary funds may be provided for constituent documents and the adopted accounting policy of the enterprise, then their creation is mandatory, or the decision to direct profits to these funds is made by the meeting of shareholders on the proposal of the board of directors (participants).
Profit is also the main source of formation of reserve capital (fund).
Reserve capital - part of the equity capital allocated from profits to cover possible losses. The source of reserve capital formation is net profit, that is, the profit remaining at the disposal of the organization.
Only joint-stock companies must create a reserve fund. The minimum size of the reserve fund is 5% of the authorized capital. In this case, the amount of annual mandatory contributions to the reserve fund cannot be less than 5% of net profit until the amount established by the company’s charter is reached.
The funds of the company's reserve fund are used:
To cover the company's losses;
Bond redemptions;
Redemption of shares of a joint stock company in the absence of other funds.
Reserve capital cannot be used for other purposes.
Depreciation deductions. Depreciation is a method of reimbursing capital spent on the creation and acquisition of depreciable assets by gradually transferring the cost of fixed assets and intangible assets to manufactured products.
Depreciation functions are divided into economic And tax .
Tax depreciation is determined in accordance with the Tax Code of the Russian Federation and its role is to reduce taxable profit.
Accounting depreciation may be greater than tax depreciation depending on how it is determined under applicable accounting standards.
Depreciation deductions fixed assets are included in the cost of production according to established standards to the book value of fixed assets. Fixed assets are grouped depending on their duration beneficial use, and depreciation rates are applied to the cost of each group.
For accounting purposes, there are four ways to calculate depreciation of fixed assets:
1. linear;
2. reducing balance;
3. write-off of cost based on the sum of the numbers of years of useful life;
4. write-off of cost in proportion to the volume of production.
The chosen method of calculating depreciation is fixed in the accounting policy of the organization and is applied throughout the entire service life of the fixed asset.
Additional issue of shares leads to a decrease in the property of existing shareholders, and therefore can only be done with their consent at a general meeting. If, when establishing a company, payment of shares in the amount of 50% is allowed at the time of registration, and the remaining amount - within a year, then when issuing additional shares, at least 25% of the par value of their acquisition is paid, and the remaining amount - no later than a year from the date of their placement . In accordance with the legislation of the Russian Federation, nominal
the cost of placed preferred shares should not exceed 25% of the authorized capital of the company.
Placement of securities(shares, bonds) on the primary securities market is carried out in two forms:
Through an intermediary,
By directly contacting investors, i.e. direct sale of enterprise securities to investment funds (firms) and individuals.
Disadvantages of equity financing:
An additional issue of shares is a very expensive and time-consuming process;
Emission may be accompanied by a decline market price shares of the issuing company;
There is no tax shield.
Extra capital is a specific own source of financing for the organization's enterprise. Unlike the authorized capital, it is not divided into shares (shares) and shows common property all participants (shareholders).
The formation and increase of additional capital can be carried out in the following cases:
1. Upon receipt of share premium.
2. When revaluing fixed assets.
3. If exchange rate differences arise as a result of the formation of authorized capital expressed in foreign currency.
4. When receiving targeted investment funds from the budget to finance capital investments (for non-profit organizations).
Bank loans. The loan can be provided in cash or commodity form on the terms of urgency, payment, repayment and material security.
The principal amount of debt for a loan or credit received is taken into account by the borrowing organization in accordance with the terms of the loan agreement (or credit agreement) in the amount of funds actually received or in the valuation of other things provided for in the agreement.
When considering the option of raising funds using a long-term loan, an enterprise chooses a bank that offers a lower interest rate, all other things being equal. The terms of the loan agreement are optimal for both parties if the transaction is based on market interest rate level, which allows you to equate the market value of capital received in exchange for debt and the present value of future payments on it.
The interest on the loan is determined by adding a premium to the base rate. The base rate is set by each bank individually, based on the discount rate of the Central Bank of Russia. The premium depends on the term of the loan, the quality of the collateral and the degree of credit risk associated with its provision.
As loan collateral accepted:
Pledge of property,
Surety,
Bank guarantee,
State and municipal guarantees,
Assignment of the borrower's claims and accounts to a third party in favor of the bank.
Despite a number of disadvantages for the enterprise (on the one hand, the deterioration of the structure of the organization’s liabilities, the need for time and financial costs to prepare a qualified business plan, to process a loan application in a commercial bank), bank long-term lending is still one of the most effective ways of financing . For an enterprise, the presence of long-term borrowed funds among the sources of its property is positive thing, since this allows you to have borrowed funds long time. Long-term loans by Russian enterprises can be obtained from both Russian and foreign banks.
A commercial loan is a deferment of payments from one business entity to another. Forms of commercial credit - advance, prepayment, deferment and installment payment for goods and services. Used by entrepreneurs engaged in certain related activities, for example, producers-sellers and consumers-buyers of the same product. The object of a commercial loan is funds in commodity form.
The credit document when applying for a commercial loan is a bill of exchange. Commercial loans can also be made through an open account. An open account is a “bill-free” form of commercial lending, a special form of settlement relations between entrepreneurs carrying out mutual deliveries, i.e. being permanent counterparties to various transactions. tactically, enterprises open credit lines to each other, within which mutual supplies are made. Investment tax credit is a deferment of tax payment provided by government authorities or tax authorities.
A bonded loan is a loan that involves the borrower issuing debt obligations in the form of bonds.
A bond is an issue-grade security that secures the right of its holder to receive from the issuer of the bond, within the period specified by it, its nominal value and the percentage of this value fixed in it or other property equivalent. Bondholders have no ownership or equity interest in the firm or institution that issued the bond.
Bonds are a constant (in value) claim on the issuer's profit (determined by the amount of periodically paid interest), as well as a fixed claim on the issuer's assets (equal to the repayment amount). Bonds typically pay interest every six months. However, there are exceptions to this rule: in some cases, the interest payment interval is reduced to one month, and very rarely the payment is made once a year. The amount of interest paid depends on the coupon.
The book value of a bond loan, as a rule, does not coincide with its market value. The assessment of the market value of bonds is based on a number of data indicated on the bond itself: official issue date, par value, maturity date, announced interest rate, interest payment date. Enterprises issuing loans strive to bring the announced interest rate on the bond as close as possible to the market rate in effect at the time the loan is issued. Changes in the market interest rate and market value of the issuing company's loan are in inverse relationship. If the market interest rate exceeds the announced value, then the placed bonds are sold at a discount ( discount), and in the opposite situation, it is added to their cost bonus. Joint stock companies and limited liability companies are allowed to issue bonds. According to Russian legislation, there are a number of restrictions on the issue of bonds. Depending on the volume of the issue and the preparedness of the enterprise for the issue, it is possible to use various methods of placing bonds.
Leasing is an extended lease agreement. The owner of the equipment (lessor) provides the user (lessee) with the opportunity to operate the equipment in exchange for regular rental payments. Leasing relationships essentially act as credit transactions, since the lessee receives for temporary use the value embodied in machinery and equipment on the terms of repayment and payment.
Chapter 2. Management of the organization’s own and borrowed capital
Management of equity capital involves managing the process of its formation, maintenance and effective use, that is, management of already formed assets. This involves both managing equity capital as a whole and managing its structural elements.
Own capital management should be preceded by a study of the effectiveness of its management in previous period. Analysis is necessary to determine reserves for the formation of own funds.
The basis for managing an enterprise's own capital is managing the formation of its own financial resources. In order to ensure effective management By this process, the enterprise usually develops a special financial policy aimed at attracting its own financial resources from various sources in accordance with the needs of its development in the coming period.
The main objectives of equity capital management are:
Determining the appropriate amount of equity capital;
Increasing, if required, the amount of equity capital through retained earnings or additional issue of shares;
Determining the rational structure of newly issued shares;
Determination and implementation of dividend policy.
The development of a policy for the formation of an enterprise’s own financial resources is carried out according to the following main stages.
Analysis of the formation of the enterprise's own financial resources in the previous period. The purpose of this analysis is to identify the potential for generating one’s own financial resources and its compliance with the pace of development of the enterprise.
2. Determination of the total need for own financial resources. The calculated total need covers the required amount of own financial resources generated from both internal and external sources.
3. Estimation of the cost of raising equity capital from various sources. This assessment is carried out in the context of the main elements of equity capital formed from internal and external sources. The results of this assessment serve as the basis for the development management decisions regarding choice alternative sources formation of own financial resources, ensuring an increase in the enterprise’s own capital.
4. Ensuring the maximum volume of attraction of own financial resources from internal sources.
5. Ensuring the required volume of attracting own financial resources from external sources. The volume of attraction of own financial resources from external sources is intended to ensure that part of them that could not be formed through internal sources of financing. If the amount of own financial resources attracted from internal sources fully meets the total need for them in the planning period, then there is no need to attract these resources from external sources.
6. Optimization of the ratio of internal and external sources of formation of own financial resources. This optimization process is based on the following criteria:
Ensuring the minimum total cost of attracting own financial resources;
Ensuring that the original founders retain control of the enterprise.
Management of an enterprise's own capital also includes determining the optimal ratio between its own and borrowed financial resources.
Although the basis of any business is equity capital, in enterprises in a number of sectors of the economy the volume of borrowed funds used significantly exceeds the volume of equity capital. In this regard, managing the attraction and effective use of borrowed funds is one of the most important functions of financial management, aimed at ensuring the achievement of high final results of the enterprise's economic activity.
Borrowed capital used by an enterprise characterizes in aggregate the volume of its financial liabilities (total amount of debt). These financial obligations in modern economic practice are differentiated as follows:
1. Long-term financial liabilities (borrowed capital with a term of use of more than 1 year).
2. Short-term financial liabilities (all forms of borrowed capital with a period of up to 1 year).
In the process of development of an enterprise, as its financial obligations are repaid, the need arises to attract new borrowed funds. The sources and forms of raising borrowed funds by an enterprise are very diverse. Borrowed funds are classified by purpose, source, form and period of attraction, as well as by the form of security.
Taking into account the classification of borrowed funds, methods for managing their attraction are differentiated.
Managing the attraction of borrowed funds is a targeted process of their formation from various sources and in different forms in accordance with the needs of the enterprise for borrowed capital at various stages of its development.
Stages of developing a policy for attracting borrowed funds by an enterprise |
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Analysis of the attraction and use of borrowed funds in the previous period |
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Determining the goals of raising borrowed funds in the coming period |
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Determination of the maximum volume of borrowings |
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Estimation of the cost of raising borrowed capital from various sources |
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Determining the ratio of the volume of borrowed funds raised on a short-term and long-term basis |
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Determination of forms of raising borrowed funds |
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Determination of the composition of the main creditors |
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Formation of effective conditions for attracting loans |
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Ensuring the effective use of attracted loans |
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Ensuring timely payments for received loans |
The object of study of this course work is open Joint-Stock Company"Innovator".
The Novator experimental design bureau was created in December 1947 on the basis of the department of the Chief Designer of the Plant named after. M.I. Kalinin (plant No. 8) as OKB-8. The initial specialization was the development of large-caliber anti-aircraft guns. In addition to military orders, OKB Novator developed and commissioned land and sea meteorological missile systems. OKB Novator continues to actively work on creating new models of rocketry that meet the challenges of the time.
JSC Novator has an independent balance sheet, settlement and other accounts. The Company has a round seal containing its full corporate name in Russian and an indication of its location. The Company has the right to have stamps and forms with its corporate name, its own emblem, as well as a trademark registered in the prescribed manner and other means of individualization.
Located at: 620017, Russia, Ekaterinburg, Kosmonavtov Ave., 18.
Analysis financial condition JSC OKB Novator
The analysis of the financial condition of the enterprise is carried out according to the financial statements and the profit and loss report for 2008. (Appendix 1 and Appendix 2).
Relative indicators of financial stability.
Provision ratio of own current assets:
SOS=KR-VA, where (2.1)
SOS – own working capital;
OA - current assets;
KR – capital and reserves, the result of section 3;
VA – non-current assets.
The coefficient of provision of own working capital determines the degree of provision of the organization with its own working capital, necessary for its financial stability, and is calculated as the ratio of the difference between own funds and adjusted non-current assets to the value of current assets.
If the value of the coefficient is greater than or equal to one, the enterprise, at the expense of its own working capital, fully provides its current assets, and has absolute financial stability. The lower the ratio, the more unstable the financial condition of the enterprise. An enterprise reaches a critical financial condition when the ratio is 10% or lower.
We can say that at the beginning of the reporting year, the company had reached a critical financial condition, since the ratio was 2.6%. which is less than 10%. But by the end of the year, it is observed that the enterprise, using its own funds, fully provides its current assets and has almost absolute stability.
Inventory coverage ratio with own working capital:
- recommended value 0.5-0.8, where (2.2)
Z – reserves.
Inventory coverage ratio own sources financing shows what part of tangible current assets is financed from equity capital.
If this ratio is greater than one, then the amount of own working capital exceeds the amount of inventories and costs, and the enterprise has absolute financial stability.
This coefficient shows. That at the end of the reporting year approximately 50% of tangible current assets are financed from equity capital.
Maneuverability coefficient:
(2.3)
The ratio shows what part of equity capital is used to finance current activities, i.e. invested in current assets, and what part is capitalized, i.e. invested in non-current assets.
Permanent Asset Index:
Characterizes the share of fixed assets and non-current assets in sources of equity.
Since the agility coefficient and the index of constant prices in the family give 1, therefore, the organization does not use long-term loans and borrowings.
Autonomy ratio:
, where (2.5)
VB – balance sheet currency.
The autonomy coefficient shows the share of own funds in the total amount of funding sources. This financial ratio allows you to assess the dependence of the enterprise on external sources of financing, i.e. the ability to carry out activities without additional borrowing capital. On the other hand, the autonomy coefficient shows how much the financial obligations of an enterprise can be covered by its own capital.
By the end of the reporting period, one can see a slight increase in this indicator, by 0.063 or 6.3%, which means that the dependence of own funds on borrowed funds has decreased, which means that there has been an increase in own funds.
Absolute independence coefficient:
, where (2.6)
DO – long-term obligations.
The coefficient shows what part total cost The assets of the enterprise are formed from the most reliable sources of financing, i.e. does not depend on short-term borrowed funds. Essentially, this is a refined autonomy coefficient.
Financial dependency ratio (debt):
, where (2.7)
KO – short-term liabilities.
The financial dependence ratio of an enterprise means how much the assets of the enterprise are financed by borrowed funds. Too large a share of borrowed funds reduces the solvency of the enterprise, undermines its financial stability and, accordingly, reduces the confidence of counterparties in it and reduces the likelihood of obtaining a loan.
Both at the beginning and at the end of the reporting year, the enterprise has approximately the same dependence on borrowed funds. But we cannot say that the share of borrowed funds reduces the solvency of the organization.
Funding ratio:
(2.8)
The financing ratio provides the most general assessment of an organization's financial strength. It shows how much borrowed funds account for each ruble of equity capital invested in the assets of the enterprise. The growth of this indicator indicates the increasing dependence of the enterprise on borrowed capital, i.e. about some decrease in financial stability, and vice versa.
Leverage:
(2.9)
Financial leverage carries fundamental information for both the entrepreneur and the banker. Large leverage means significant risk for both participants in the economic process.
Investment Rate:
The investment ratio shows the extent to which non-current assets are covered by the enterprise's own capital.
By the end of the reporting year, this indicator increased by 0.172 or 17.2%, which means that equity capital began to cover non-current assets by 17.2%.
Return on equity:
, (2.11)
where Rsk is return on equity,
NPR – net profit
KR – loans and borrowings (in this case the average value is taken).
Return on equity characterizes the efficiency of using the company's own funds. Return on equity shows how much net profit is per ruble of equity.
For 1 ruble of own funds in 2008 there were 5.9 kopecks of net profit.
Impact of Return on Sales:
(2.12)
Driven by sales margins, return on equity decreased by 1.7%.
Chapter 3. Optimization of the structure of sources of financing for entrepreneurial activities
Optimal capital structure represents a ratio of the use of own and borrowed funds that ensures the most effective proportionality between the financial profitability ratio and the enterprise’s financial stability ratio, i.e. its market value is maximized.
The process of optimizing the capital structure of an enterprise is carried out in the following stages:
-Analysis of enterprise capital
-Assessment of the main factors determining the formation of the capital structure
-Optimization of the capital structure according to the criterion of maximizing the level of financial profitability;
-Optimization of the capital structure according to the criterion of minimizing the level of financial risks;
-Optimization of the capital structure according to the criterion of minimizing its cost.
One of the mechanisms for optimizing the capital structure of an enterprise is financial leverage, which allows you to determine the amount of borrowed funds raised by the enterprise per unit of equity capital. An indicator reflecting the level of additionally generated profit on equity capital at different shares of borrowed funds is called financial leverage effect. It is calculated using the following formula:
EGF = (1 - Sn) × (KR - Sk) × ZK/SK,
Where:
EGF- effect of financial leverage, %.
Sn- income tax rate, in decimal expression.
KR- return on assets ratio (ratio of gross profit to average asset value), %.
Sk - the average size interest rates for loans, %.
ZK- the average amount of borrowed capital used.
SK- average amount of equity capital.
This formula opens up wide opportunities for the financial manager to determine the safe amount of borrowed funds, calculate acceptable lending conditions, ease the tax burden for the enterprise, determine the feasibility of purchasing shares of the enterprise with certain values of the differential, leverage and the level of the EFR as a whole.
The question arises: “What value of EGF should we strive for?” Many Western economists believe that golden mean close to 30 - 50 percent, i.e. The EFR should optimally be equal to one third to half the level of the EFR of assets. Then the EDF is able to, as it were, compensate for tax withdrawals and provide its own funds with a decent return. Moreover, with such a ratio between EFR and ER, shareholder risk is significantly reduced.
When choosing sources of financing for an enterprise, you must:
determine short-term and long-term capital needs;
analyze possible changes in the composition of capital assets in order to determine their optimal structure in terms of volume and type;
ensure continued solvency and, therefore, financial stability;
use your own and borrowed funds as profitably as possible;
reduce the cost of financing business activities.
The calculated financial stability indicators for the period under review indicate that at the beginning of the reporting year, the company had reached a critical financial condition, since the working capital ratio was 2.6%, which is less than 10%. But by the end of the year, it is observed that the enterprise, using its own funds, fully provides its current assets and has almost absolute stability. At the end of the reporting year, approximately 50% of the organization's tangible current assets are financed from its own capital. At the beginning of the period, 2.3% of equity capital, and at the end, 16.4% was already invested in current assets. A low value of the agility indicator (below 50%) means that a significant part of the enterprise’s own funds is secured in immobile assets, which are less liquid, i.e. cannot be converted into cash quickly enough. Since the agility coefficient and the constant price index together give 1, therefore, the organization does not use long-term loans and borrowings. By the end of the reporting period, one can see a slight increase in the autonomy indicator, by 0.063 or 6.3%, which means that the dependence of own funds on borrowed funds has decreased, which means that there has been an increase in own funds. Both at the beginning and at the end of the reporting year, the enterprise has approximately the same dependence on borrowed funds. But we cannot say that the share of borrowed funds reduces the solvency of the organization. By the end of the reporting year, the investment indicator increased by 0.172 or 17.2%, which means that equity capital began to cover non-current assets by 17.2%.
Development using only one's own resources reduces some financial risks in business, but at the same time greatly reduces the rate of increase in the size of the business, especially revenue. On the contrary, attracting additional debt capital with the right financial strategy and quality financial management can dramatically increase the income of company owners on their invested capital. The reason is that an increase in financial resources, with proper management, leads to a proportional increase in sales and often net profit. This is especially true for small and medium-sized companies.
However, a capital structure overloaded with borrowed funds places excessively high demands on its profitability, since the probability of non-payments increases and the risks for the investor increase. In addition, the company's clients and suppliers, noticing a high share of borrowed funds, may begin to look for more reliable partners, which will lead to a drop in revenue. On the other hand, too low a share of debt capital means underutilization of a potentially cheaper source of financing than equity capital. This structure results in higher capital costs and higher return requirements for future investments.
The optimal capital structure is such a ratio of own and borrowed sources that ensures optimal ratio between levels..., i.e. The market value of the enterprise is maximized. When optimizing capital, every part of it must be taken into account.
Own capital is characterized by the following additional points:
1. Ease of attraction (you need a decision from the owner or without the consent of other business entities).
2. High rate of return on invested capital, because No interest is paid on funds raised.
3. Low risk of loss of financial stability and bankruptcy of the enterprise.
Disadvantages of own funds:
1. Limited volume of attraction, i.e. it is impossible to significantly expand economic activity.
2. The opportunity to increase the return on equity by attracting borrowed funds is not used.
Advantages of borrowed capital:
1. Wide possibilities for raising capital (with collateral or guarantee).
2. Magnification financial potential enterprises if it is necessary to increase the volume of economic activity.
3. Ability to increase return on equity.
Disadvantages of debt capital:
1. Difficulty in attracting, because the decision depends on other economic entities.
The need for collateral or guarantees.
2. Low rate of return on assets.
3. Low financial stability of the enterprise.
Based on these features and after analyzing the enterprise JSC OKB Novator, we can conclude that if the management of the enterprise uses borrowed capital, it will have higher potential and the possibility of increasing the return on equity capital, but at the same time its financial stability will be lost. But if management decides to use equity capital as a source of financing, then financial stability, on the contrary, will be the highest, but the possibilities for profit growth will be limited.
Conclusion
Financing refers to the process of generating funds or, more broadly, the process of generating capital for an enterprise in all its forms.
Classification of funding sources is varied and can be produced according to the following characteristics:
According to property relations, own and borrowed sources of financing are distinguished.
By type of property, state resources, legal and individuals and foreign sources.
According to time characteristics, sources of financing can be divided into short-term and long-term.
As part of internal sources of formation of own financial resources. The main place belongs to the profit remaining at the disposal of the enterprise - it forms the predominant part of its own financial resources.
Depreciation charges also play a certain role in the composition of internal sources; although they do not increase the amount of equity capital of the enterprise.
Other internal sources do not play a significant role in the formation of the enterprise's own financial resources.
Among the external sources of formation of its own financial resources, the main place belongs to the attraction by the enterprise of additional share or equity capital. For individual enterprises, one of the external sources of formation of their own financial resources may be the gratuitous financial assistance provided to them (as a rule, such assistance is provided only to individual state enterprises of different levels).
In the conditions of transition to the market, non-traditional instruments for financing activities are beginning to be used. Russian enterprises. These include commercial loans, options, collateral transactions, factoring transactions, leasing, etc.
Currently, the financing of enterprises is in an unsatisfactory state due to the lack of own funds for self-financing, the lack of sufficient government financial support, the high cost and riskiness of innovation, the long-term nature of the payback of innovative projects and the dominance of conservative investors instead of aggressive ones. For further successful development Russian companies it is necessary to solve two problems: the first is to optimize sources of financing for the development of new projects; the second is to learn to select innovative projects that will bring real results even in times of crisis.
Chapter 2 of the study is devoted to the analysis of the capital structure of Novator OJSC. In general, the study is aimed at studying modern concepts capital management and their application to determine the optimization of the structure of financing sources of Novator OJSC. The conducted research allows us to formulate the conclusion that the management of the enterprise needs to consider all possible options obtaining long-term loans to improve production.
List of sources and literature used
1. Federal Law of June 19, 2000 No. 82-FZ “On the Minimum Wage” // Collection of Legislation of the Russian Federation - June 26, 2000, - No. 26, - Art. 2729.
2. Kovaleva A.M., Lapusta M.G., Skamai L.G. Company finances. – M.: INFRA – M, 2007. – P. 212.
3. Sheremet A.D. Enterprise finance: management and analysis - M. Finance 2006. - P. 156
4. Stock Market: A Study Guide for Higher Education educational institutions economic profile N.I. Berzon, E.A. Buyanova, M.A. Kozhevnikov, A.V. Chalenko Moscow: Vita-Press, 2008
5. Lukasevich I.Ya. Analysis of financial transactions. Methods, models, computing techniques: – M.: Finance, UNITI, 2008. – P. 203
6. Blank I. A. Financial management: training course. – 2nd ed., revised. and additional – K..: Elga, Nika – Center, 2005. – 656 p.
7. Financial management: textbook / Ed. E.I. Shokhina. – M.: ID FBK-PRESS, 2008. – 408 p.
8. Economic analysis of financial and economic activity/Ed. M.V.Melnik. – M.: Economy, 2006. – 320 p.
10. Balance sheet of JSC OKB Novator for 2008 (form 1)
11. Profit and loss report of JSC OKB Novator for 2008 (form 2).
Kovaleva A.M., Lapusta M.G., Skamai L.G. Company finances. – M.: INFRA – M, 2007. – P. 212.
Federal Law of June 24, 2008 N 91-FZ “On Amendments to Article 1 Federal Law“On the minimum wage” [Text] // Collection of legislation of the Russian Federation - 06/30/2008. - N 26. - Art. 3010.
Sheremet A.D. Enterprise finance: management and analysis - M. Finance 2006. - P. 156
Stock market: Textbook for higher educational institutions of economic profile N.I. Berzon, E.A. Buyanova, M.A. Kozhevnikov, A.V. Chalenko Moscow: Vita-Press, 2008
Lukasevich I.Ya. Analysis of financial transactions. Methods, models, computing techniques: – M.: Finance, UNITI, 2008. – P. 203
Based on the place of origin, the financial resources of an enterprise are classified into:
internal financing;
external financing.
Internal financing involves the use of those financial resources, the sources of which are generated in the process of the financial and economic activities of the organization. Examples of such sources include net profit, depreciation, accounts payable, reserves for future expenses and payments, and deferred income.
External financing uses funds that come to the organization from the outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, and non-financial organizations.
An organization's financial resources, unlike material and labor resources, are interchangeable and susceptible to inflation and devaluation.
The following sources of funding are identified:
Internal sources of the enterprise (net profit, depreciation, sale or rental of unused assets).
Raised funds (foreign investments).
Borrowed funds (loan, leasing, bills).
Mixed (complex, combined) financing.
Internal sources of financing of the enterprise
IN modern conditions enterprises independently distribute the profits remaining at their disposal. Rational use of profits involves taking into account factors such as the implementation of plans further development enterprises, as well as respecting the interests of owners, investors and employees.
To the advantages internal financing enterprises should include the absence of additional costs associated with attracting capital from external sources, and maintaining control over the activities of the enterprise by the owner. The disadvantage of this type of enterprise financing is that it is not always possible to use it in practice.
The second internal source of financing is the profit of the enterprise remaining after taxes. As practice shows, most enterprises do not have enough of their own internal resources to update fixed assets.
Involved funds
Credit is a loan in monetary or commodity form provided by the lender to the borrower on the terms of repayment, most often with the borrower paying interest for using the loan. This form of financing is the most common.
Advantages of the loan:
the credit form of financing is characterized by greater independence in the use of received funds without any special conditions;
Most often, a loan is offered by a bank that services a specific enterprise, so the process of obtaining a loan becomes very quick.
The disadvantages of the loan include the following:
the loan term in rare cases exceeds 3 years, which is prohibitive for enterprises aimed at long-term profit;
To obtain a loan, an enterprise must provide collateral, often equivalent to the amount of the loan itself;
in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial to the enterprise;
With this form of financing, the enterprise can use standard scheme depreciation of purchased equipment, which obliges you to pay property taxes throughout the entire period of use.
Leasing is a special complex form of entrepreneurial activity that allows one party - the lessee - to effectively update fixed assets, and the other - the lessor - to expand the boundaries of activity on mutually beneficial terms for both parties.
Advantages of leasing:
Leasing involves 100% lending and does not require immediate payments. When using a conventional loan to purchase property, the company must pay about 15% of the cost from its own funds.
Leasing allows an enterprise that does not have significant financial resources to begin implementing a large project.
It is much easier for an enterprise to obtain a leasing contract than a loan - after all, the equipment itself serves as security for the transaction.
A leasing agreement is more flexible than a loan. A loan always involves limited amounts and repayment terms. When leasing, an enterprise can calculate its income and work out with the lessor an appropriate financing scheme that is convenient for it. Repayment can be made from funds received from the sale of products produced on leased equipment. The company has additional opportunities to expand production capacity: payments under the leasing agreement are distributed over the entire term of the agreement and, thus, additional funds are freed up for investment in other types of assets.
Leasing does not increase debt on the company’s balance sheet and does not affect the ratio of equity and borrowed funds, i.e. does not reduce the enterprise’s ability to obtain additional loans. It is very important that equipment purchased under a leasing agreement may not be listed on the lessee’s balance sheet during the entire term of the agreement, and therefore does not increase assets, which exempts the company from paying taxes on acquired fixed assets.
Leasing payments paid by the enterprise are entirely attributed to production costs. If the property received under leasing is accounted for on the balance sheet of the lessee, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its cost and norms approved in the prescribed manner, increased by a factor not exceeding 3.
Leasing companies, unlike banks, do not need collateral if the property or equipment is liquid on the secondary market.
Leasing allows an enterprise to minimize taxation on completely legal grounds, as well as to attribute all costs of equipment maintenance to the lessor.
Classification of financial resources by sources of formation
By place of origin The financial resources of the enterprise are classified into:
- internal financing;
- external financing.
Internal financing involves the use of those financial resources, the sources of which are formed in the process of the financial and economic activities of the organization. Examples of such sources include net profit, depreciation, accounts payable, reserves for future expenses and payments, and deferred income.
At external financing funds coming to the organization from outside world. Sources of external financing can be founders, citizens, the state, financial and credit organizations, and non-financial organizations.
Grouping of financial resources of organizations by sources of their formation is presented in the figure below.
An organization's financial resources, unlike material and labor resources, are interchangeable and susceptible to inflation and devaluation.
Today, an urgent problem for domestic industrial enterprises will be the condition of fixed production assets, the deterioration of which has reached 70%. In this case, we are talking not only about physical, but also about moral wear and tear. There is an urgent need to re-equip Russian enterprises with new high-tech equipment. In this case, the choice of source of financing for this re-equipment is important.
The following sources of funding are identified:
- Internal sources of the enterprise(net profit, depreciation, sale or rental of unused assets)
- Involved funds(foreign investment)
- Borrowed funds(loan, leasing, bills)
- Mixed(complex, combined) financing.
Internal sources of financing of the enterprise
Let us note the fact that in modern conditions, enterprises independently distribute the profits that remain at their disposal. Rational use of profits involves taking into account factors such as the implementation of plans for the further development of the enterprise, as well as respect for the interests of owners, investors and employees.
As a rule, 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 on the dividend policy adopted by the enterprise.
TO advantages of domestic financing enterprises should be classified no additional costs associated with raising capital from external sources, and maintaining control over the activities of the enterprise by the owner.
Disadvantage this type of enterprise financing will be its application in practice is not always possible. The depreciation fund has lost its importance because depreciation rates for most types of equipment used at Russian industrial enterprises are underestimated and can no longer serve as a full-fledged source of financing, and the permitted accelerated depreciation methods cannot be used for existing equipment.
Second internal source of financing- the profit of the enterprise remaining after paying taxes. As practice shows, most enterprises do not have enough of their own internal resources to update fixed assets.
Involved funds
When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and his share of ownership in it. The higher the share foreign investment, the less control the owner of the enterprise has.
Remains debt financing, in which there is a choice between leasing and credit. Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction it is necessary to take into account specific conditions.
Credit - as a source of financing for an enterprise
Credit- a loan in monetary or commodity form provided by the lender to the borrower on the terms of repayment, most often with the borrower paying interest for using the loan. By the way, this form of financing will be the most common.
Advantages of the loan:
- the credit form of financing is characterized by greater independence in the use of received funds without any special conditions;
- Most often, a loan is offered by a bank that services a specific enterprise, so the process of obtaining a loan becomes very quick.
The disadvantages of the loan include the following:
- the loan term in rare cases exceeds 3 years, which will be prohibitive for enterprises aimed at long-term profit;
- To obtain a loan, an enterprise must provide collateral, often equivalent to the amount of the loan itself;
- in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial to the enterprise;
- With this form of financing, an enterprise can use a standard depreciation scheme for purchased equipment, which obliges it to pay property taxes throughout the entire period of use.
Leasing - as a source of financing for an enterprise
Leasing is a special complex form of entrepreneurial activity that allows one party - the lessee - to effectively update fixed assets, and the other - the lessor - to expand the boundaries of activity on mutually beneficial terms for both parties.
Advantages of leasing:
- Leasing involves 100% lending and does not require you to start payments immediately. When using a conventional loan to purchase property, the company must pay about 15% of the cost from its own funds.
- Leasing allows an enterprise that does not have significant financial resources to begin implementing a large project.
It is much easier for an enterprise to obtain a leasing contract than a loan - after all the equipment itself serves as security for the transaction.
A leasing agreement is more flexible than a loan. A loan always involves limited amounts and repayment terms. When leasing, an enterprise can calculate the receipt of their income and work out with the lessor a financing scheme that is convenient for it. Repayment can be made from funds received from the sale of products produced on leased equipment. They open in front of the enterprise additional features to expand production capacity: payments under a leasing agreement are distributed over the entire term of the agreement and, thereby, additional funds are released for investment in other types of assets.
Leasing does not increase debt in the company’s balance sheet and does not affect the ratio of equity and borrowed funds, i.e. does not reduce the enterprise’s ability to obtain additional loans. It is very important that equipment purchased under a leasing agreement may not be listed on the lessee’s balance sheet during the entire term of the agreement, and therefore does not increase assets, which exempts the enterprise from paying taxes on acquired fixed assets.
The Tax Code of the Russian Federation preserves the right to choose the balance sheet accounting of property received (transferred) under financial lease on the balance sheet of the lessor or lessee. The initial cost of the property that is the subject of leasing is the amount of the lessor's expenses for its acquisition. Excluding the above, since 2002, regardless of the chosen method of accounting for the property that is the subject of the leasing agreement (on the balance sheet of the lessor or the lessee), lease payments reduce the tax base (Article 264 of the Tax Code of the Russian Federation). Article 269 of the Tax Code of the Russian Federation introduced a restriction on the amount of interest on loans that the lessor may attribute it to the reduction of the taxable base, but in other cases the lessor may attribute the amount of interest on the loan to the reduction of the taxable base.
Leasing payments, paid by the enterprise, entirely on production costs. If the property received under leasing is accounted for on the balance sheet of the lessee, the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property can be calculated based on its cost and norms approved in the prescribed manner, increased by a factor not exceeding 3.
Leasing companies unlike banks no deposit required, if the property or equipment is liquid on the secondary market.
Leasing allows an enterprise to minimize taxation on completely legal grounds, as well as to attribute all costs of equipment maintenance to the lessor.
Sources of financing the organization’s activities as an object of accounting
Introduction
Financial resources (financial sources) play a major role for any enterprise. They are used in the process of production, investment and financial activities, at the expense of funding sources, in due time, a company is created. Financial sources are constantly in motion and are in cash form only in the form of cash balances in bank accounts and in the company's cash register.
The relevance of this work lies in the fact that financial resources are necessary both for the formation and subsequent functioning of the company, its innovation activities, etc. Competent assessment and control of sources of financing allows an enterprise to pursue the most profitable and favorable policy for its growth. Reflection of sources of financing in accounting allows you to obtain the most complete information about the state of the financial resources of the enterprise.
The purpose of the work is to study the sources of financing the activities of the organization as one of the objects of accounting.
Objectives: consider the concept of sources of financing the organization’s activities, types of sources, reflection of sources of activity in accounting.
Research methods are: research, analysis, induction, deduction.
1.Sources of financing the organization’s activities as an object of accounting
financing accounting
1.1The concept and types of sources of financing the organization’s activities
Sources of financing (resources) are functioning channels for obtaining financial resources and economic entities that can provide these financial resources (Appendix 1). The basis for financing the activities of an enterprise is to develop financing schemes based on individual characteristics and impact external factors.
The following sources of funding are identified:
)Internal sources of the enterprise - authorized capital (funds from the sale of shares and share contributions of participants or founders), proceeds from sales; depreciation charges, net profit of the enterprise; reserves accumulated by the enterprise, other contributions from legal entities and individuals (targeted financing, donations, charitable contributions). Eg, rational use profit and depreciation may allow expansion of business activities.
2)Raised funds (foreign investment) - When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and his share of ownership in it. The higher the share of foreign investment, the less control the owner of the enterprise has. It may also be an additional issue of securities, through which the company’s share capital is increased, as well as the attraction of additional share capital through additional contributions of funds to the authorized fund;
3) Borrowed funds (credit<#"justify">There is another option for dividing funding sources into:
.Internal sources - profit remaining at the disposal of the company, which is distributed by decision of the management bodies; depreciation charges, which represent the monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.
2.Short-term funds are funds used to pay wages, pay for raw materials and various current expenses. The forms of implementation of funding sources in this case may be as follows:
· bank overdraft - an amount received from the bank in excess of the balance in the current account. Overdraft is payable upon request of the bank. This is usually the cheapest form of loan, the interest rate on it does not exceed 1-2% of the bank’s discount rate,
·bill of exchange<#"justify">3.Medium-term funds (from 2 to 5 years) are used to pay for machinery, equipment and research work. The purchase of machinery, equipment and vehicles by an enterprise on credit occurs on fixed terms, secured by the purchased goods, with regular repayment of the loan in installments. The group of medium-term financial resources includes the rental of machinery and equipment. Payment for the use of leased funds is made in regular installments, while ownership never passes to the debtor.
4.Long-term financial resources (over 5 years) are used for the acquisition of land, real estate and long-term investments. It can be:
· long-term (mortgage) loans - provided by insurance companies or pension funds funds secured by land plots, buildings for a period of 25 years,
· Bonds are debt obligations with a set interest rate and maturity date. A significant part of the bonds has a face value,
· issue of shares - receipt of funds through sale various types shares in the form of closed or open subscription.
1.2. Sources of financing as an object of accounting
The organization's property is formed by raising funds from various sources. In accounting, sources of financing are:
)Authorized capital (fund) is the totality in monetary terms of contributions of founders (owners) to property (the cost of fixed assets, intangible assets, working capital and cash) when creating an enterprise to ensure its activities in the amounts determined by the constituent documents. Accounting is maintained in account 80 “Authorized capital”.
2)Additional capital - is formed due to the increase in the value of non-current assets: when revaluing fixed assets upward; upon receipt of various assets from legal entities and individuals (not subject to return), as well as at the expense of share premium. Accounting is maintained in account 82 “Additional capital”.
)Reserve capital - created through annual deductions from net profit, intended to cover losses, as well as for company bonds and repurchase of company shares in case of other means. The amount of reserve capital and the amount of mandatory contributions to it are determined by the charter or constituent documents. Accounting is maintained in account 82 “Reserve capital”.
)Retained earnings - net profit or part of it, not distributed in the form of dividends between shareholders (founders), but aimed at accumulating the property of a trading organization or replenishing its working capital in the form of free sums of money, which can be used for a new turnover at any time. Accounting is maintained in account 99 “Profit and Loss”.
)Targeted financing is funds received from other enterprises, state and municipal bodies and intended for the implementation of activities intended purpose. A feature of this type of financing may be that capital investments can be made within the framework of joint activities. Trust funds - the list and procedure for the formation of target funds (special purpose funds) are regulated by the constituent documents and adopted accounting policies. Special funds include: an accumulation fund, a consumption fund, a social sector fund and other similar funds formed by an organization from the profits remaining at the disposal of the organization after taxation. Accounting is kept under account 86 “Targeted financing” and depends on the types of financing.
)Bank loans - the amount of short-term and long-term bank loans received (outstanding). Accounting is maintained in account 66.67 “Settlements for short-term loans and borrowings”, “Settlements for long-term loans and borrowings”
)Borrowed funds - the amount of shares issued and sold by the enterprise labor collective, shares of the enterprise and bonds, short-term and long-term loans, etc. Accounting is carried out on account 66.67 “Settlements on short-term loans and borrowings”, “Settlements on long-term loans and borrowings”, as well as on account 58 “Financial investments”.
)Settlements and other accounts payable - amounts owed to suppliers for goods and services on bills issued, on advances received, on wages, insurance, budget, etc. Accounting is kept under account 60 “Settlements with suppliers and contractors”, 62 “Settlements with buyers and customers”, 68 “Calculations for taxes and fees”, etc.
As an example, you can write down the entries in Account 86 “Targeted Financing”, which is intended to summarize information about the movement of funds intended for the implementation of targeted activities, funds received from other organizations and individuals, budget funds, etc.
Targeted funds received as sources of financing for certain activities are reflected in the credit of account 86 “Targeted financing” in correspondence with account 76 “Settlements with various debtors and creditors.”
The use of targeted financing is reflected in the debit of account 86 “Targeted financing” in correspondence with accounts: 20 “Main production” or 26 “General expenses” - when sending targeted financing funds for maintenance non-profit organization; 83 “Additional capital” - when using targeted financing received in the form of investment funds; 98 "Deferred income" - when directed commercial organization budget funds to finance expenses, etc.
Analytical accounting for account 86 “Targeted financing” is carried out according to the purpose of targeted funds and in the context of their sources of receipt.
Targeted funding is reflected not when funds are received, but when the legally formalized will of the body that undertakes to allocate these funds is expressed:
Debit 76 “Settlements with various debtors and creditors / Credit 86 “Targeted financing”
And only after the money is received, the accountant will make a posting:
Debit 51 “Current accounts” / Credit 76 “Settlements with various debtors and creditors”
Thus, the debit of account 51 “Current accounts” concentrates the money received, and the credit of account 86 “Targeted financing” indicates that this money can only be spent in accordance with a given purpose.
2. Practical part
1) Net profit refers to the following source of financing:
a) internal sources
b) borrowed sources
c) attracted sources
Answer: A)
) Receipt of funds from citizens is an example:
a) internal financing
b) external financing
c) own financing
Answer: A)
) The following can act as borrowed funds:
a) financing
b) foreign investment
c) loans
Answer: V)
) The absence of additional costs associated with attracting capital from external sources and maintaining control over the activities of the enterprise by the owner is an advantage...
a) raised funds
b) internal sources
c) foreign investment
Answer: b)
5) What type of funds raised allows you to minimize taxation?
a) loan
b) bill
c) leasing
Answer: V)
) Can an employee of an enterprise donate funds to form the capital of the company?
c) only if there is permission from the manager
Answer: A)
) The formation of authorized capital funds is carried out on the account...
Answer: V)
8) The state can finance with:
a) loans
c) subsidies
d) loans
Answer: b)
9) Funds from the sale of shares and share contributions of participants form:
a) additional capital
b) own shares
c) authorized capital
Answer: V)
) Account 58 “Financial investments” are reflected:
a) borrowed funds
b) own funds
c) invested funds
Answer: A)
) Sources of financing are:
a) constant
b) mixed
c) variables
Answer: b)
12) The organization’s property is formed from:
a) one source
b) several sources
c) all at the same time
Answer: b)
) What form of borrowing is most common:
a) loan
c) leasing
Answer: A)
2.2 Problem
Task. The enterprise must construct a capital construction project with funds provided by the investor.
Solution: Operations for the movement of sources of financing for capital construction are taken into account by investors and customers in the accounts of cash (51 "Settlement accounts", 52 "Currency accounts", 55 "Special accounts in banks"), settlements (76 "Settlements with various debtors and creditors ") and targeted sources (86 "Targeted financing").
At the same time, objects put into operation in the prescribed manner: are included by the developer on the balance sheet as part of his own property; transferred by the customer to investors who provided him with funds to finance these objects, or to persons specified in the contract.
The customer keeps records of funds received to finance capital construction until its completion in account 76 “Settlements with various debtors and creditors.” Accounting for capital construction operations is carried out in the following order:
Dt sch. 51, 52, 55 Set count. 76 - sources of financing were received from an investor;
Dt sch. 08 Set count. 51, 52, 60, 76, etc. - construction costs are reflected;
Dt sch. 19 K-t count. 60, 76, etc. - VAT is reflected on invoices of suppliers and contractors;
Dt sch. 76 Set count. 08 - costs upon completion of construction are written off from funding sources;
Dt sch. 76 Set count. 19 - VAT is written off upon completion of construction at the expense of financing sources;
Dt sch. 76 Set count. 90 - the customer’s revenue (income) is reflected as the difference between the estimated amount (limit) of funds for its maintenance, actual maintenance costs and the amount of savings according to the estimate, if this is provided for in the agreement (contract) for capital construction with the investor;
Dt sch. 90 Set count. 68 - VAT is reflected on the amount of revenue;
Dt sch. 90 Set count. 99 - profit from investment activities is reflected
Dt sch. 76 Set count. 51 - savings were returned to the investor.
Conclusion
The financial results of an enterprise depend on the availability and efficient use of financial resources that ensure the life of the organization.
In a market economy, sources of financial resources are of great importance: in practice, an enterprise cannot do without attracting borrowed or own funds. Sources of financing in all types in normal economic conditions contribute to increased production efficiency, necessary for the implementation of expanded production. The variety of channels for attracting financial resources creates the opportunity to use them in various situations.
Therefore, control and organization financial sources is the primary principle of activity of any business entity. In a market economy, these issues have great importance. Each enterprise must carry out timely formation and competent organization of financial resources.
List of used literature
1) Federal Law of December 6, 2011 N 402-FZ (as amended on November 4, 2014) “On Accounting” (December 6, 2011)
2)Tests and control tasks in management accounting and controlling<#"justify">Applications
Annex 1
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