Fixed assets: structure, features of functioning and statistics

The basic funds of the organization are such means of production, which are used for several cycles, while maintaining its shape. Naturally, they gradually wear out, transferring their value in parts to newly created products.

Core funds include:

• Constructions;
• Land;
• Machines, industrial buildings;
• Devices;
• equipment;
• instruments.

They include the physical capital of the organization, but such that the service life is more than a year, and the cost is more than a hundred times the minimum wage. The volume is calculated only in monetary terms. Consequently, fixed assets can be characterized as financial assets that have been invested in a material form.

Let's consider in more detail their kinds, features of functioning and the basic statistics.

Structure of fixed assets

It will be determined by the specifics of production and the strategic goals of the organization; Is represented as a percentage, depending on the specific weight of the various groups. For example, in the machine building industry, machines and equipment (about 50%), as well as buildings (40%) should occupy the greatest weight.

Funds can be divided into two large groups.

First, production, which directly participate in the manufacture of products (or the provision of services) and which, in turn, can also be classified for several reasons.

Such fixed assets are divided into the following subgroups:

• Buildings for industrial purposes (buildings of workshops, warehouses, laboratories, etc.);
• Engineering facilities (trestles, tunnels, roads, freestanding pipes, etc.);
• Transmitting devices (electrical networks, gas networks, heating systems, transmissions and so on);
• Machines and equipment (power, working, regulating, measuring, computing and others);
• Vehicles (cars, diesel locomotives, motorcycles, cars, carts, cars and so on);
• Tool (impact, cutting, sealing, pressing, fastening, for installation, etc.);
• Production accessories and equipment (workbenches, tables, containers, fences, racks, fans and so on);
• Household equipment (cabinets, tables, safes, hangers, copiers, typewriters, etc.).

Production fixed assets are also subdivided into active (equipment, machines, vehicles, tools) and passive (all other subgroups), which are intended to create conditions for the normal operation of the enterprise.

Secondly, non-productive fixed assets. They do not participate in the creation of products, but provide life and work of employees. These are houses, clubs, kindergartens, sanatoriums, stadiums, health facilities and so on.

Statistics of fixed assets. Accounting is made in both natural and value terms.

In the first case, this is necessary in order to:

• Determine the technical composition and balance of equipment;
• Calculate the production capacity of the organization and its production departments and units;
• Determine the degree of wear and tear on equipment, application and timing of renewal.

The initial documents, which are necessary to control the fixed assets in kind, are the passports of jobs, equipment and enterprises. The first two should contain a technical detailed description: the timing of commissioning, the degree of deterioration, power and so on. The passport of the enterprise contains its profile, technical characteristics, equipment, economic indicators.

The monetary valuation is necessary in order to determine their total value, composition and structure, dynamics, the amount of depreciation charges, and the economic feasibility of their use.