Capital investments

Investments and capital investments are the basis for investment activities of any enterprises. The importance of capital investments for the economy is obvious. They are necessary for:

- for nature protection;

- development of health care, education;

- to improve the quality of work;

- for equipment modernization;

- expansion of enterprises, as well as increase in profits;

- improving the quality of products;

- renovation of enterprise funds;

- development of the areas of the national economy;

- solving the problems of unemployment and so on.

Capital investments

Capital-forming investments are contributions to expansion, construction, maintenance of existing production and so on. Part of the capital investment - this is the capital investment. They are understood as certain costs, which are aimed at the reproduction and creation of fixed assets. Capital investments are the necessary conditions for the existence of any enterprise. The firm, resorting to them, gets the opportunity to increase its profit in a short period of time. It is worth noting that long-term investments often lead to loss of profits, make the firm unable to resist competitors.

Capital investments consist of the following parts:

- costs for installation and construction work;

- costs for research, scientific and other work;

- labor investment and other costs.

Appointments of capital investments are different. The main ones include the introduction of the newest, as well as support for existing production capacities, changing conditions and labor productivity, improving the quality of products, developing its new species, saving natural resources and so on.

There are general capital investments. This refers to the total amount of investment in a particular project. The new ones are those that do not take into account existing production assets, additional ones are needed to solve side problems, related ones are used in related areas.

Capital investments are always necessary. The source of financing is often a loan. Also to sources it is possible to carry profit of the enterprises, means of the state budget and so on. Often they are limited, and this primarily means that the use should be as effective as possible. In the event that capital investments do not pay off or do not pay off in full, the company needs to change its tactics. Delays can easily lead not only to the loss of new capital investments, but also to the fact that the enterprise will be completely ruined (the loan has not justified itself, and how to pay for it, it is necessary to pay off also on newly appeared debts).

The main areas of capital investments include:

- expansion of enterprises. Such extensions are made by increasing the staff, acquiring new equipment and replacing the old, building new workshops, changing the destination of the old ones;

- reconstruction of enterprises. Here is meant the reorganization of workshops, the modernization of equipment and so on;

- technical reorganization of existing enterprises;

- New construction.

An audit of capital investments is necessary to comply with regulatory documents and the taxation methodology used by the enterprise, as well as accounting. As a rule, its tasks are as follows:

- assessment of the state of analytical, as well as synthetic accounting of capital investments;

- evaluation of internal control of the capital investment system ;

- study of the state, effectiveness, and legality of deposits;

- verification of compliance with all rules and regulations, which are specified in the legislation of the Russian Federation.