Financial assets and liabilities. What is a financial asset? What financial assets do not include

The company's assets are divided into three groups: intangible, tangible and financial. Financial assets are a set of financial resources that belong to a company as property. These are the ones that will be discussed in this article.

The main task of finance. assets – the process of generating profit. Such assets are capable of generating income when used in operating or investment activities. This is their main feature.

This income is financial. assets are brought in as economic resources with a certain productivity. However, in the process of using such assets, some risks may arise.

Composition of financial assets

Financial assets include:

Company money in cash and non-cash form;
Various securities;
Financial investments;
Debts of debtors;
Other settlement documents.

The bulk of financial assets in most firms consists of money and debts from debtors.

Let's look at the main types of financial assets in more detail.

Money

Cash is a medium of exchange. They evaluate all transactions performed. This asset can be expressed in both cash and non-cash form; both in domestic currency and in foreign currency.

Financial investments

Financial investments are a group of assets that have a documentary base confirming the company’s rights to own and use them.

This group of assets includes such sources of income as:

Bank deposits;
Providing interest-bearing loans to third-party companies;
Third Party Securities;
Securities of state and municipal nature;
Contributions to the authorized capital of third-party companies.

Debts of debtors

Accounts receivable is the total amount of debts owed to the company by individuals. and legal persons in the position of debtors. This form of asset refers to all payments made to consumers. It can lead to the appearance of accounts payable.

Accounting for financial assets

When accounting for financial assets, they are divided into two groups:

Production – their price may change due to the influence of external factors (exchange rates);
Non-productive - their value is clearly defined and does not change in any case.

Here are the basic principles for accounting for such assets:

Money is reflected in accounting at its nominal price. They can be taken into account in accounts 50 to 57.
Securities and financial investments are reflected in account No. 58. If necessary, subaccounts can be opened for it.
There are quite a few accounts for accounting for accounts receivable – from 60 to 76.

Financial market assets

The financial assets market has three directions:

Credit market. He is the most in demand. Quite often, companies need to attract additional resources from outside.
Valny market. Its existence is due to the need to service transactions made with foreign partners. The exchange of money is accompanied by changes in exchange rates.
Stock market. It involves investing in financial assets - investing money and securities in projects that will generate profit in the future. Such a market is an integral part of the country's economy.

One of the most important information sources, according to which certain management decisions in an organization are made, is financial reporting. The information specified in it is used when conducting research into the activities of the enterprise. It evaluates the company's financial assets and liabilities. The cost at which they are reflected on the balance sheet has a significant impact on the adoption of certain administrative decisions. Let us further conduct a financial analysis of the company's assets.

General information

Main financial assets include:

Cash in hand.
Deposits.
Bank deposits.
Checks.
Investments in securities.
Blocks of shares of third-party companies giving control rights.
Portfolio investments in securities of other enterprises.
Obligations of other companies to pay for delivered products (commercial loans).
Equity participations or shares in other companies.

Fixed financial assets allow us to characterize the property assets of a company in the form of cash and instruments belonging to it. This category includes:

Exceptions

The category under consideration does not include inventories and some assets (fixed and intangible). Financial assets presuppose the creation of a valid right to receive money. Possession of these elements creates the possibility of receiving funds. But due to the fact that they do not form the right to receive, they are excluded from the category.

Administration

Financial assets are managed in accordance with a number of principles. Their implementation ensures the efficiency of the enterprise. These principles include:

Ensuring the interaction of the asset management scheme with the general administrative system of the organization. This should be expressed in the close relationship of the first element with the tasks, accounting, and operational activities of the company.
Ensuring multiple options and flexibility of management. This principle assumes that in the process of preparing administrative decisions on the creation and subsequent use of funds in the investment or operating process, alternative options should be developed within the acceptable limits of the criteria approved by the company.
Ensuring dynamism. This means that in the process of developing and implementing decisions in accordance with which the organization's financial assets will be used, the impact of changes in external factors over time in a particular market sector should be taken into account.
Focus on achieving the company's strategic goals. This principle assumes that the effectiveness of certain decisions should be checked for compliance with the main objective of the company.
Ensuring a systematic approach. When making decisions, asset management should be considered as an integral element of the overall administrative system. It ensures the development of interdependent options for implementing a particular task. The latter, in turn, are associated not only with the administrative sector of the enterprise. In accordance with these decisions, a financial asset of production, sales and innovation management is subsequently created and used.

Price

In direct form, a financial asset is assessed after carrying out activities to collect data, examine rights, market research, study reporting and forecasts for the development of the enterprise. The traditional method of determining cost is based on the acquisition or production price minus depreciation. But in situations where there is a fluctuation in indicators (a drop or an increase), the cost of funds may have a number of inconsistencies. In this regard, the financial asset is periodically revalued. Some enterprises carry out this procedure once every five years, others every year. There are also companies that never do it. However, assessing the value of assets is critical. It manifests itself mainly when:

Increasing the efficiency of the company's administrative system.
Determining the value of a company when buying and selling (the entire enterprise or part of it).
Company restructuring.
Development of a long-term development plan.
Determining the solvency of the enterprise and the value of the collateral in case of lending.
Establishing the amount of taxation.
Making informed administrative decisions.
Determining the value of shares when buying and selling a company's securities on the stock market.

Important Categories

A financial asset is considered as an investment in instruments of other enterprises. It also acts as an investment in transactions that provide for the receipt of other funds on potentially favorable terms in the future. A financial asset that provides for the right to claim money in the future under an agreement is:

Bills receivable.
Accounts receivable.
Amounts of debt on loans and bonds receivable.

At the same time, the opposite party acquires certain financial obligations. They assume the need to make payment under the contract in the future.

Financial asset ratios

When studying reporting and studying the results of a company's economic activities, a number of indicators are used. They are divided into five categories and reflect different aspects of the company's condition. Thus, there are coefficients:

Net current financial assets

They are necessary to maintain the financial stability of the company. The net capital indicator reflects the difference between current assets and short-term debt. If the first element exceeds the second, we can say that the company can not only repay the debt, but also has the opportunity to form a reserve for subsequent expansion of activities. The optimal working capital indicator will depend on the specifics of the company’s activities, its scale, sales volume, inventory turnover rate, and accounts receivable. If these funds are insufficient, it will be difficult for the company to repay its debts on time. When the net current asset significantly exceeds the optimal level of demand, they speak of irrational use of resources.

Independence indicator

The lower this ratio, the more loans the company has and the higher the risk of insolvency. Also, this indicator indicates the potential danger of the company experiencing a cash shortage. The indicator characterizing the enterprise's dependence on external loans is interpreted taking into account its average value for other industries, the company's access to additional sources of debt funds, and the specifics of the current production cycle.

Profitability indicator

This ratio can be found for different elements of the company's financial system. In particular, it may reflect the firm's ability to generate sufficient revenue relative to its current assets. The higher this indicator is, the more efficiently the funds are used. The return on investment ratio determines the number of monetary units that the company needed to generate one ruble of profit. This indicator is considered one of the most important indicators of competitiveness.

Other criteria

The turnover ratio reflects the efficiency of an enterprise's use of all the assets it has, regardless of the sources from which they came. It shows how many times during the year the full cycle of circulation and production occurs, which brings the corresponding result in the form of profit. This indicator differs quite significantly across industries. Earnings per share act as one of the most important indicators that influence the market value of a company. It reflects the share of net income (in cash) that is attributed to a common security. The ratio of share price to profit shows the number of monetary units that participants are willing to pay per ruble of income. In addition, this ratio reflects how quickly investments in securities can bring profit.

CAMP assessment model

It acts as a theoretical basis for several financial technologies used in managing risk and return in long- and short-term equity investing. The main result of this model is the formation of an appropriate relationship for the equilibrium market. The most important point in the scheme is that in the selection process the investor does not need to take into account the entire risk of the stock, but only the non-diversifiable or systematic one. The CAMP model considers the profitability of a security taking into account the general state of the market and its behavior as a whole. The second underlying assumption of the framework is that the investor makes a decision taking into account only risk and expected return.

Basic Assumptions

The CAMP model is based on the following criteria:

The main factors for evaluating an investment portfolio are the expected profitability and the standard deviation during its holding.
Assumption of unsaturation. It consists in the fact that when choosing between equal portfolios, preference will be given to the one characterized by higher profitability.
Risk elimination assumption. It lies in the fact that when choosing from other equal portfolios, the investor always chooses the one with the smallest standard deviation.
All assets are infinitely divisible and absolutely liquid. They can always be sold at market value. In this case, the investor can purchase only part of the securities.
Transaction taxes and costs are infinitesimal.
The investor has the opportunity to borrow and lend at a risk-free rate.
The investment period is the same for everyone.
Information is instantly available to investors.
The risk-free rate is the same for everyone.
Investors weigh the standard deviations, expected returns, and covariances of stocks in the same way.

The essence of this model is to illustrate the close relationship between the rate of return and the risk of a financial instrument.

The concepts of “financial assets” and “financial liabilities” are found in the literature on personal finance management very often and these concepts are not interpreted unambiguously by different financial specialists.

The concept of financial ASSETS

In my School of Life materials, the concept of financial assets is used in the following sense:

financial assets- This is property that can be converted into money.

Is real estate a financial asset or a financial liability?

It is believed that if real estate can be turned into money, then it is an asset. If real estate cannot be converted into money, then it is not an asset, but simply real estate.

In answer to the question asked, we can say that if you have real estate, but it is residential real estate and you live in it and are not going to sell it under any circumstances, then this real estate cannot be considered an asset.

If you can sell it if necessary, then it is undoubtedly an asset.

Financial assets may or may not generate income.

For example, if you rent out your property, then this property is a source of income for you. Sometimes in this case they say that a financial asset “ creates cash flow" But even if you don't rent it out, the property is still a financial asset.

A gold bar you buy will never generate income for you, but since you bought it with the intention of selling it at a higher price in the future, it is definitely a financial asset.

Financial assets may require money for their maintenance.

For example, you can rent a bank safe to store a gold bar. And real estate requires ongoing repairs, payment of utility bills, and so on.

Financial Asset Management

Considering the above, it makes sense to competently manage your financial assets and regularly evaluate how profitable it is to own a particular financial asset.

If the increase in the price of a financial asset and the income it generates do not cover the costs of its maintenance, then you should think about selling such an asset.

The concept of financial LIABILITIES

There is even more confusion with the concept of financial liabilities than with the financial concept of assets. In financial management, the concept of financial liabilities is the sources of financial resources used to create financial assets.

In subsequent materials from my School of Life, it is proposed to understand financial liabilities as sources of money that require repayment.

To put it simply, financial liabilities– these are our debts, for example, bank loans, loans, loans. The division of property into such financial concepts as assets and liabilities is very conditional.

At the same time, this division into financial assets and liabilities allows us to fairly objectively assess the degree of health of our financial relationships in managing personal finances.

Financial Assets and Liabilities Management

To understand whether you are in a normal position in managing your personal finances, make a table with a list of your financial assets according to their current valuation, that is, at the price for which they can actually be sold today, as well as a list of your financial liabilities (i.e. debts) ).

Financial Dependency Ratio (FDC)

KFZ = Financial liabilities (Debts) / Financial Assets.

If the Financial Dependence Ratio is less than one, that is KFZ< 1 , then you have normal personal finance management.

If the Financial Dependence Ratio exceeds one, that is KFZ > 1, then this shows that your personal finance management needs adjustment.

If the Financial Dependence Ratio exceeds two, that is KFZ > 2, then you have a pronounced “financial fever”, which can soon lead to very serious financial consequences.

However, if the Financial Dependency Ratio is less than 1, this does not mean that you can relax and not pay attention to managing your financial assets and liabilities. Many “financial diseases” develop for a long time without visible signs of illness.

How to manage financial assets so that they bring money

The simplest way to manage financial assets:

is to acquire a financial asset that brings in money.

However, the acquisition of a profitable financial asset may require very significant financial investments.

Moreover, practice shows that the more reliable a financial asset is in terms of its ability to generate money, the more expensive this financial asset is worth.

The modern financial market provides ample opportunities for purchasing financial assets of different classes. If you decide to go this route, then you should start building capital sufficient to buy the financial assets that interest you.

There is another way to manage financial assets so that they bring in money.

You can create financial assets with your own hands, investing not only money, but also your own strength, time, talents and knowledge.

The more talented and energetic you are, the more time you can devote to creating your financial asset, the less money you will need and, accordingly, the financial return on investment will be greater.

The price of an income-generating financial asset is usually equivalent to the profit from owning this asset for 5-10 years.

Buying a financial asset at that price or spending several years creating such a financial asset on your own is one of the components of financial planning.

When you are employed, you create financial assets not for yourself, but for your employer.

If you want financial assets to appear in your personal life and for them to bring you money, you must get used to the idea that

You should spend some part of your resources (money, time, effort, knowledge) not on entertainment and work for other people, but on creating your own financial assets.

Where to get extra resources to create your own financial assets

Every person has a lot of opportunities to create their own financial assets, you just need to look hard for them. For example, the average Russian spends 4.5 hours a day watching TV.

FINANCIAL ASSETS

(financial assets) Money and rights (claims) to it, as distinguished from tangible (physical) assets such as land, buildings or equipment. Financial assets include money, securities that give the right to receive money, such as bills or bonds, and shares, which represent indirect ownership of the physical and financial assets of companies. Claims or rights relating to financial assets include domestic and foreign debt obligations of individuals, companies and governments. In addition, shares of financial institutions and various derivatives, such as options, are included in this category.

Economy. Explanatory dictionary. - M.: "INFRA-M", Publishing House "Ves Mir". J. Black. General editor: Doctor of Economics Osadchaya I.M.. 2000 .

Economic dictionary. 2000 .

See what "FINANCIAL ASSETS" is in other dictionaries:

Includes cash on hand; bank deposits; deposits; checks; insurance policies; investments in securities; obligations of other enterprises and organizations to pay funds for supplied products (commercial loan); portfolio investments in... ... Financial Dictionary

financial assets- Assets of an enterprise (company), which include (according to IFRS standards): cash; contractual rights to receive cash or other financial assets from another company; contractual rights to exchange... ... Technical Translator's Guide

Financial assets- (Financial assets) - assets of an enterprise (company), which include (according to IFRS standards): cash; contractual rights to receive cash or other financial assets from another company; conditioned... ... Economic and mathematical dictionary

This article lacks links to sources of information. Information must be verifiable, otherwise it may be questioned and deleted. You can... Wikipedia

financial assets- Assets in the form of shares, bonds, rights, certificates, bank balances, etc., as opposed to tangible, physical assets. For example, real estate is a physical asset, shares in a mortgage investment trust (real estate... ... Financial and investment explanatory dictionary

Financial assets- (FINANCIAL ASSET) Assets that are: a) cash; b) a contractual right to receive cash or other financial assets from another company; c) the contractual right to exchange financial... ... Finance and stock exchange: dictionary of terms

Financial assets- include: funds stored in bank accounts and in the cash register of the enterprise; securities - shares, share certificates, bonds, certificates, payment orders, checks, bills, mortgages, etc., owned by the enterprise. Securities... ... Commercial power generation. Dictionary-reference book

Financial assets- Claims (presentation of rights) to real estate... Investment Dictionary

Financial assets of the enterprise- see Enterprise assets... Encyclopedia of Law

Financial assets of the enterprise- see Enterprise assets... Large legal dictionary

Books

, M. N. Mikhailenko. The concept of the financial system and its purpose are outlined. The characteristics of the functions of the financial system are given. The main elements of the financial system - financial institutions, as well as...

Financial assets are:

cash (i.e. cash on hand, settlement, currency and special accounts);
a contractual right to claim cash or another financial asset from another company (for example, a receivable);
a contractual right to exchange financial instruments with another company on potentially favorable terms (for example, a stock option listed on the balance sheet of its holder);
an equity instrument of another company (i.e. shares, shares).

Valuation of financial assets

In the theory of financial management, the following approaches to the assessment of financial assets are used:

fundamentalist (traditional) approach;
technocratic approach;
"walking at random" theory.

Fundamentalists believe that a financial asset has intrinsic value. It is measured as the discounted value of the future earnings generated by the asset; future estimates lead to present value. In this case, it is important to make a realistic forecast of future income. The accuracy of such a forecast depends on the results of an analysis of the business situation on the capital market as well as the investment policy of the enterprise.

Technocratic approach is based on studying the history of securities quotes on the stock market and constructing price dynamic series. Using price statistics, technocrats propose to build time trends and, based on them, determine whether the current price of a financial asset corresponds to its intrinsic value.

Supporters random walking theory believe that current prices of financial assets sufficiently fully reflect information about the state of the stock market, including a forecast for the future. They proceed from the assumption that the current market price is formed on the basis of all available information and that no additional confirmation should be sought.

Likewise, all future expectations of the investor are concentrated on the current price. The new price, due to its subjectivity, cannot predict future price changes. Therefore, the intrinsic value of a security, as well as its price, fluctuates unexpectedly and does not depend on previous dynamics in the stock market.

Consequently, any relevant information cannot provide a reasonable price for the financial asset. In practice, the most widespread is the fundamentalist theory, which is most often used by potential investors.

Estimation of the potential value of financial assets depends on three quantities:

expected cash receipts,
forecast range,
rates of return.

The first parameter is set on the basis of special calculations.

The second parameter depends on the type of underlying financial asset. In relation to stocks and bonds, the forecast horizon is most often limited by the period of their circulation on the stock market, and in relation to ordinary shares it is usually equal to infinity.

The last parameter is the most important for the investor. The first two are directly tied to the underlying asset and therefore have a higher degree of reliability.

The rate of return required by an investor reflects the profitability of alternative capital investments available only to a given investor.

To assess the acceptability of investments in certain types of securities, an investor usually adds an investment risk premium to the interest rates prevailing on the capital market.

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