Financial assets represent any kind of asset that can be represented by:
- cash;
- equity participation in the share capital of another company;
- right under the contract to receive any financial asset of any company, or cash, as well as the exchange of a financial asset or liability of another entity in the theoretically beneficial to the company's circumstances;
- contract, the calculation of which can produce its own equity instrument, are non-derivative if the company has an obligation to receive a variable number of its own shares or derivatives in which payment may be made in any other way, except for the exchange of a sum of moneyor another financial asset for an equivalent amount of its own shares in the company.That is why the contract for the provision or receipt of own equity instruments of the company in the future are not included in the equity of the Company.
own financial assets-they are evaluated according to the following division into four categories:
1) financial assets at fair value as a result of the profit or loss;
2) financial assets are in stock and ready for sale;
3) accounts receivable;
4) investments that are held until full repayment.
Like every economic category, financial assets have certain properties, the main of which is the ability to increase the profitability of the company.So, any company would never invest in the acquisition of property, which would not have this property.
risk and profitability of financial assets are considered to be interrelated categories.Thus, the risk is the potential for loss of a certain amount of deposited funds or failure to obtain income predicted or planned size.Because there is a common practice risk assessment using the concept of leverage.
of any enterprise is constantly interfaced with the production or financial risk that must be taken into account depending on the position occupied by the company.Thus, the company can be characterized as a position available assets (production risk), and the source of funds (financial risk).
Production risk is always driven by the peculiarities of the functioning of companies within a particular industry.It is from this and depends on the structure of assets in which the company plans to invest its own capital.This type of risk is determined by such factors as regional peculiarities, national traditions, market conditions, as well as infrastructure.
financial risk due to the structure of sources of funds, which means the way investment funds and sources of their formation.Another important issue is the relationship between debt and equity capital.
Financial assets: risk assessment, and the factors that cause them, the analysis is carried out using the resulting profitability.The relationship came with the valuation of costs related to the acquisition of assets or other fixed assets that are required for this profit are characterized by using such indicators as leverage.This indicator can be characterized by the ratio between variable and fixed costs.
financial assets of any company reflects the general welfare, increase profits and prospects characterize the organization's readiness for the further development and expansion of production activities.
