In the era of the hegemony of the machine work and full automation of the production of the main varieties of the assets held by the company just can not be fixed assets.Fixed assets of the enterprise include all the equipment, which, one way or another, involved in the process and transfers its value to the value of the product gradually using depreciation.
If you explain it more accessible language, the fixed assets during the production cycle does not cease to exist and continue to work until they get out of order due to failure, or will not be replaced with new equipment.A typical example of plant and equipment is the machine or computer.On the other hand, current assets in the production process are destroyed in order to produce the final product.For instance, milk that is used for cheese production.
thus confuse fixed and current assets of the enterprise simply can not, if you understand the difference.The first are more important because they are a pillar of the process.In fact, it is the possession of the rights to plant and equipment makes it possible to call a person by the owner company and to recognize his right to make a profit.
assume that for production of the product would be necessary only to working capital.Then anyone could organize a small business, buying raw materials and returning those funds to help earn an income.However, the fixed assets of are very expensive and repaid over an extended period of time, so the company needs an investor to invest in plant and equipment in order to obtain future profits.
Of course, today there is no separation of ownership of various assets, because the investor receives a share of all the company's assets in the property.However, it is on privately owned primary means based development of capitalism.And until now, many political parties have raised the question of the legitimacy of the transfer of assets into private hands.
suggest that the main assets of the enterprise not belong to investors today is almost impossible, however, this form of ownership, as cooperatives of workers, seems to be quite promising.Anyway, the whole business is based on private property, equipment and it is our duty to our technological progress.
However, recently seen quite a nasty tendency to underestimation of assets.The share of fixed assets in the balance sheet becomes dramatically low due to unreasonably high measurement of financial liabilities and intangible assets.Do not forget that the first and second directly related to fixed assets, and it is the basic means of the enterprise determine its real prosperity, and at the macro level and the state of the economy throughout the country.
Underestimating assets threatens inflating the financial bubble, which has already provoked a strong economic crisis.In addition, analysis of enterprise security main means shows the distorted figures, because the focus is on today and create brand promotion, rather than technical re-equipment.
artificial reduction of the role of fixed assets may slow down, if not halt, the development of our civilization.After all, if before the equipment Enterprise Asset, largely determined its market value, but now the main importance is the value of the brand.Thus, all human efforts are aimed at maintaining competition, while, as the ongoing development of fades into the background.
