WELCOME

<< WELCOME >> << WELCOME >>

Selasa, 26 Maret 2013

ASSETS AND PAYABLE

CURRENT ASSETS


In order to ensure the financial sustainability of companies under current economic conditions successful management of current assets is crucial. In practice it is quite often observed that the decisions of current assets management in companies are made in the short-term aspects not making analysis. The aim of the article is to explore and analyze the structure of current assets and their indicators in business in Latvia. In order to reach the aim the author solves the following tasks in the research: to explore and analyze the structure of current assets, its changes and trends in the companies of Latvia; to perform calculations and analysis of the indicators characterizing the effectiveness of current assets;  basing on the analysis to evaluate the development tendencies of the structure and indicators of current assets at various stages of economic development and to determine the correlations between these indicators. The research is based on the data obtained by the Central Statistics Bureau. The research covers the period of 1995–2010. The research is based on the analysis and evaluation of special literature and scientific publications about current assets management; research involves the use of generally accepted economic and statistical analysis methods, logically-constructive method of qualitative research methods: monograph method, Latvian and foreign industry literature, legislation content analysis, quantitative research methods: economic statistics and financial analysis techniques using Microsoft Excel software, data graphical  display techniques. The article is focused on the exploration and analysis of the Latvian statistical data describing the amount, structure of current assets in business and its changes at various stages of economic development. Performing the analysis of current assets in the national economy of Latvia in general there are calculated and analyzed various indicators, for example, liquidity, turnover of current assets, working capital.





  FIXED ASSETS


Fixed assets, as opposed to current assets, are those assets with a remaining useful life of over an year. Following the accruals principal, these assets are shown on the balance sheet but their value is depreciated, and treated as an expense in the P & L account for each year of their life.

There are two types of fixed assets:

·         Tangible fixed assets
·         Intangible fixed assets


Tangible fixed assets include physical assets such as land and buildings and equipment. Long term financial investments are also considered tangible.

The most important intangible fixed asset is goodwill. Other intangibles includes patents, copyrights and trademarks.

In many cases it may be necessary to adjust for the value of intangibles (usually by deducting them from total fixed assets) in order to allow fair comparisons between companies or to to make measures of financial strength (such as gearing) more meaningful. This is because the value of intangibles is often less certain and usually reflects the history of the company.

Long Term Debt and Short-Term

Long-term debt obligations of the parties are required to be repaid within a period of more than one accounting period (1 yr) was calculated from the date of manufacture of the balance sheet as of December 31. Payments made with cash, but can be replaced by a specific asset. In the normal operation of the company, long-term debt account was never subject to the cash disbursement transactions. At the end of the accounting period of a certain part of long-term debt turned out to be short- term debt. For it must be adjusted to move the long-term debt maturities to short- term debt. The emergence of Long Term Debt When the scale of growing operations or in building a company needs some funds. The funds required for investment in fixed assets that will provide long-term benefit should be obtained from long-term debt or to raise capital. In this case, the company has two options, namely attractive long-term debt such as bonds or increase capital by issuing shares. There are several advantages attractive long-term debt through bonds rather than add to their own capital by issuing shares.Compelling advantages bond The bondholders do not have voting rights in that company policy does not affect management. Interest on bonds may be lower than the dividend paid to shareholders.Interest is the fee charged to companies that can reduce tax liability whereas dividends are profits that can not be deducted as expenses.Conversely there is also a less favorable terms include:Interest on bonds is fixed charges in both state enterprises profit or loss. If the company is unable to pay maturing bonds, the bond holders still have the right to demand repayment of the bonds while shareholders have no such rights because shareholders are the owners of the company are also responsible to bear the risk of loss perusagaan.Type of Long-Term Debt Broadly speaking, the long-term debt are classified in two groups, namely: Mortgage Debt: Debt incurred related to the acquisition of funds from loans secured by fixed assets. In an agreement described property as collateral the borrower in the form of land or buildings. If the borrower does not pay on time, the lender can sell the collateral is then offset against the debt.Bonds: Debt incurred relating to the expenditure of funds obtained through bonds. Buyers of bonds called bondholders. In nominal value of bonds listed bonds, interest per annum, dated bond redemptions and other provisions corresponding bond types. 

Short- term debt obligations that are expected to be paid within one year or one operating cycle of the company which is longer (SFAS No.. 9 Books SAK 1994). Type - the type of Short-Term Debt Accounts Payable Accounts payable or accounts payable is the amount of money still to be paid to suppliers, because the company purchases goods or services. One example is the purchase of accounts payable merchandise or office equipment on credit. This loan does not require letter or written agreement so that its implementation is based on a sense of mutual trust.Promissory notes payable or Promissory notes or debt obligation is evidenced by unconditional written promise to pay a certain amount of money on the determined at a later date. Therefore it can be said that This debt is more formal than the usual trade payable. Expenses accrued expenses (accrual liabilities) Expenses to be paid is the duty of the burden - the burden that have occurred, but have not been paid for yet mature end of the period. Debt Dividend Debt dividend is to be paid as declared by the board of commissioners of the company but at the end of the period yet paid and recorded as a dividend payable.

1. The aim of the article is to explore and analyze the structure of current assets and their indicators in business in Latvia

(-) The aim of the article is not to explore and analyze the structure of current assets and their indicators in business in Latvia
(?) Is the aim of the article to explore and analyze the structure of current assets and their indicators in business in Latvia?


2. Its changes and trends in the companies of Latvia
(-) it doesn’t change and trend in the companies of Latvia
(?) does it change and trend in the companies of Latvia?


3. The research is based on the data obtained by the Central Statistics Bureau
(-) The research is not based on  the data obtained by the Central Statistics Bureau
(?) Is the research based on the data by the Central Statistics Bureau ?

4. The research covers the period of 1995–2010
(-) The research doesn’t cover the period of 1995-2010
(?) Does the research cover the period of 1995-2010 ?


5. The research is based on the analysis and evaluation of special literature and scientific publications about current assets management
(-) his research is not based on the analysis and evaluation of special literature and scientific publications about current assets management
(?) is his research the analysis and evaluation of special literature and scientific publications about current assets management ?

6. Research involves the use of generally accepted economic and statistical analysis methods
(-) research doesn’t involve the use of generally accepted economic and statistical analysis methods
(?) does research involve the use of generally accepted economic and statistical analysis methods ?

7. The article is focused on the exploration and analysis of the Latvian statistical data describing the amount
(-) The article is not focused on the exploration and analysis of the Latvian statistical data describing the amount
(?) Is the article focused on the exploration and analysis of the Latvian statistical data describing the amount?

8. Long term financial investments are also considered tangible
(-) Long term financial investments aren’t considered tangible
(?) Are long term financial investments considered tangible ? 


9. This is because of the value of intangibles is often less certain and usually reflects the history of the company
(-) This isn’t because of the value of intangibles is often less certain and usually reflects the history of the company
(?) Is this because of the value of intangibles is often less certain and usually reflects the history of the company ?


10. The funds required for investment in fixed assets that will provide long-term benefit should be obtained from long-term debt or to raise capital
(-) The funds required for investment in fixed assets that will provide long-term benefit shouldn’t  be obtained from long-term debt or to raise capital
(?) Should The funds required for investment in fixed assets that will provide long-term benefit be obtained from long-term debt or to raise capital?









2 komentar: