main capital of the organization is part of the performance, core capital, which is repeatedly and fully involved in the reproduction of the product.To this can be attributed to that part of the cash flow, which was spent on the construction of structures and buildings, purchase of machines, tools and equipment.Once the goods have implemented, the fixed assets will be returned entrepreneur in parts.Let us consider in more detail the features of its structure, composition and functioning.
Fixed capital - the cash flows that invested in fixed assets.It changes its real form through a series of successive and interrelated steps:
- Investing in real assets (facilities, buildings, equipment, machinery, etc.), rather than financial (bonds and shares).
- goods production and consumption of resources.Develop a strategy to implement them.
- gradual transfer of labor costs as moral and physical wear and tear on the manufactured product.For this purpose special funds - depreciation, which include the costs of circulation and production.
- Stage compensation Depreciation commences when converted into monetary value (revenue and cost).Through these funds again comes the purchase of equipment and its constant renewal.
Such is the structure of fixed capital.But it can vary depending on the scope of the company, its policies, strategic goals and tactical objectives.
The core capital includes:
- plant and equipment, that is such a part of the property that is used as a means of labor in the production of goods, works or services.These cash flows can be used to manage the company for a certain period, which must necessarily exceed twelve months.Fixed assets also include land, etc., which are owned by the organization.It is a monetary evaluation and PF values which have a long period of service.
- Unfinished investments with long term include the costs of formation and an increase in their size.In addition, they include such investments which were designed for the purchase of non-current assets not held for sale.
- Long-term investments in securities government securities, bonds and others, as well as in the authorized capitals of other organizations.
- Intangible assets, which include copyright to the result of intellectual activity.They also take into account the composition of the business reputation of the company and the system of organizational costs (such as those associated with the formation of a legal entity, registration of the authorized (share) capital, and so on).
Fixed capital also includes:
- buildings as one of the types of funds, including a system of architectural objects.Their basic purpose is to create conditions for living, working and socio-cultural services staff, as well as the preservation of wealth.
- Facilities as infrastructure needed for optimal care of the production process.
- power and working equipment and machinery - a small part of the capital that is used in the production of goods.
- Control, measuring devices and instruments, as well as computer equipment.
fixed capital must be formed in accordance with its characteristics, policies and objectives.However, for their achievements in the current market situation requires a constant adjustment of the process.
