economic crisis the most adverse effect on the financial condition of many Russian companies, resulting in the net asset value could be significantly reduced.Net assets - is the carrying value of all assets of the enterprise net liabilities of the company.The net asset value can be calculated on the basis of the balance sheet, it is reflected in the financial statement of changes in equity.Calculate the net asset value of the company is possible in accordance with the orders of the Ministry of Finance of Russia № 10, but there is stipulated that the order of calculation does not apply to insurance and banking companies limited by shares.Procedure for assessment of the net assets of the insurance company regulated by the Order Ministry of Finance of Russia jointly with the Federal Financial Markets Service № 7. Instead of calculating the net asset lenders calculates equity.
net assets often affect the payment of dividends, as well as from it almost always depends on the fate of the company.In that case, if the composition of the net assets will be significantly less than the authorized capital, the company will be obliged to immediately take certain measures.If the net asset value falls below the minimum value of the share capital, it is quite possible the decision on voluntary liquidation of the enterprise or the liquidation of the company at the request of tax authorities in court.It should be borne in mind that the liquidation of the legal entity means the cessation of its activities without transfer of rights and duties to another person.The net assets of joint-stock companies must be disclosed in the annual and interim financial statements of the enterprise, but in relation to limited liability companies such indications are not available.
composition of net assets is important for companies that pay dividends to its shareholders, the decision on the distribution of profits among the participants adopted at the general meeting of shareholders.However, a limited liability company has no right to take such a decision, if the total value of net assets at the time the decision is less than the authorized capital or will be lower as a result of the decision.Limited Liability Company shall be entitled to a quarterly, semi-annually or annually raise the issue of the distribution of income of the enterprise among its participants.
company may not make a decision on distribution of profit if:
- net assets of the Company is less than its charter capital;
- resulting payments, the net asset value of the enterprise will be less than the reserve fund and its share capital;
- day decision-making structure of net assets is less than the authorized capital of the enterprise.
In the domestic market there are many companies with negative net assets, and there are quite favorable as long as the tax authorities filed a lawsuit to liquidate the company to court.This fact once again proves that the head of the company must always be aware of its financial situation, although financial reporting is not always objective.Important determinant of capital structure and characterize the stability of the enterprise, are the net assets and the composition of the balance sheet total.
analysis of the net asset value consists of analyzing the dynamics of net assets and the valuation of its reality, assessment of relations share capital and net assets, as well as the assessment of profitability and net asset turnover.We should not forget that the amount of net assets - the value of rather conventional, as calculated by the calculation of the balance sheet in which assets are represented by accounting prices, and not on the market.
