What are enterprise liabilities?
The basic accounting document serving forevaluation of the performance of any company, is a balance. Its main principle is to maintain a balance between asset and liability. The structure of the balance depends on the scope of the enterprise, but is formed on the general principle: on the left side - assets, in the right - liabilities. The lines with the corresponding sequence number reflect individual articles. It is on their basis that the analysis of the company's activities is conducted. What are the liabilities and assets of the balance, you must know any person who is related to the economic sphere.
Balance
To assess the activities of the company management,credit organizations, owners, shareholders, fiscal state bodies, the main accounting document is used - form No. 1 of any reporting. The balance sheet reflects all the assets, liabilities, capital, money and working capital of the organization for a certain period. The monetary valuation of each article gives an opportunity to analyze the assets and liabilities of the organization. The principle of equilibrium, regulated by a double entry, ensures the balance of the two sides of the balance sheet, each of which is systematized according to the types of liquidity of the funds. What are the liabilities of the enterprise, you can learn from the right side of the table, you need to study its structure.
Normative acts (the Tax Code)the standard form of the balance sheet, its sections are fixed and the order of filling of each article is registered. To decipher this report form, there are additional applications that reflect specific information for each type of assets or liabilities and capital. Required information for filling:
- the name of the organization (complete, prescribed in the statutory documents);
- the corresponding codes (TIN, OKVED, OKEI, OKOPF, OKFS);
- the date of compilation and submission to the tax authorities;
- the registration address of the organization.
Balance sheet structure
What are liabilities? First, these are the funds reflected on the right side of the balance sheet. The passive has three main sections:
- Short-term liabilities.
- Long term duties.
- Capital and reserves. Each line or element of liability reflects the enterprise's funds, through which the active part of the balance is formed.
When asked what liabilities are, you can answervery simply - the capital of the organization. It can consist of borrowed funds (short-term or long-term liabilities) or own (reserve, reserve, additional capital, retained earnings of the previous period.). What is an asset? These are objects and means of production.
The structure of the left side of the balance sheet is as follows:
- Fixed assets.
- Current assets.
Each section of the article is written in orderthe greatest liquidity. All balance indicators are listed in the table at the end and beginning of a certain reporting period, which facilitates visual analysis at the time of compilation. To conduct comprehensive studies of the organization's activities, the asset, like liabilities, has annexes (transcripts) for each article.
What are liabilities
The right side of the balance sheet reflects all sourcesformation of the company's assets. In sum, these indicators give a liability, which in monetary terms shows the balance currency. It is necessarily equal to the active part, i.e., the left side of the table. In Latin, the word "passive" means "inactive". In fact, this type of enterprise resources is used to create assets, capital goods, working capital, intangible and basic equipment that participate in a closed production cycle. Under the concept of "liabilities" are suitable all types of capital of the organization, depending on the form of its organization (joint-stock, statutory); financial obligations of different terms (loans, loans, bills) and accumulated in the form of various funds (depreciation, reserve) own funds (the amount of retained earnings for prior periods).
In accounting terminology is often usedthe term "aggregate capital", this concept is identified with the liability and its currency. Also, the right side of the balance sheet in various sources can appear as a "commitment" of the enterprise.
Liabilities structure
All obligations of the enterprise are classified according to the following articles:
- Imaginary - such liabilities are reflected in the accounting ortax accounting for a certain date to calculate the value of net assets, but in fact are extinguished. Their timely identification will help to avoid double payment, i.e., to keep turnover enterprises without reducing their cost. To alleged liabilities include: cash received as a loan from the owner of the company, reserves of forthcoming payments, debts of creditors with expired limitation period and others.
- Hidden - Obligations actually absent, butreflected in the composition of credit, tax or extrabudgetary payments. They may arise in the process of drawing up a balance sheet if the debt is written off (reflected) in the accounting records of the debts listed. Hidden liabilities include: deferred tax liabilities, charitable transfers, inefficient contracts or objects of non-productive infrastructure, repayment of debts of branches or subsidiaries (when taking on the corresponding obligations), and others.
- Actual - actually existing and reflected in the balance sheetliabilities. They, in turn, are subdivided into current and long-term obligations to credit institutions, budgets of different levels, employees of the organization, founders or shareholders. Urgency of liabilities is determined by their maturity date, which depends on the relevant contract. In the performance of actual liabilities, the organization loses part of its own asset, which may be money, fixed or circulating funds, finished products, etc.
What is current liabilities
Any commercial or publicthe organization attracts borrowed funds to carry out its activities. Obligations, the execution of which occurs within a calendar year, is called current. They are reflected in the liabilities of the balance sheet, in the "Short-term liabilities" section. As a rule, they are fully provided with the availability of liquid assets on a specific date. Current liabilities include: debts to employees on wages, obligations to the budget, short-term loans, loans and debts, debts to suppliers of raw materials, materials and equipment (within the limits stipulated by the contract). In order to understand what the current liabilities are in the balance sheet, it is necessary to refer to the lines of the fifth section "Short-term liabilities". The following accounting accounts are grouped in it: 66, 60, 62, 75, 70, 69, 68.
What is long-term liabilities
For large-scale financial projects of the organizationattract borrowed funds for a long time. Their high specific gravity implies partial quenching over a long period of time. Long-term liabilities, or liabilities, are loans, loans, loans received for a period exceeding one year. Also, they include bills of exchange and bonds issued by the company. As a security for this category of liabilities, the credit institution, as a rule, accepts non-current assets of the enterprise. For the period of loan cancellation, they are pledged, but they continue to participate in production processes.
Bank liabilities
Methodology of accounting for creditorganization is different from the rules of the NC of the rules for other economic entities. Therefore, it is worthwhile to dwell on the issue of what a bank's liability is. Capital is the main instrument for carrying out the activities of credit institutions. It is he who is the passive, the value of which is the currency of the bank balance. The higher this value, the more effective these tools are used. Each organization seeks to increase liabilities through its own and attracted funds. The structure of bank capital includes: authorized capital, income from securities issuance, deposits of legal entities and individuals, profit from activities.
Analysis of Liabilities
To assess the liabilities and capital of an enterprisethe balance is used. The most common form of passive analysis is the study of its structure. Evaluation of the mass share of long-term and short-term liabilities in its composition. At the same time, the number of liquid assets that can serve to repay debts in the reporting period and on a long-term basis is considered. Positive dynamics of liabilities is the presence of a large amount of equity in the balance structure. A serious warning to the company's management in the analysis of liabilities is the large share of long-term liabilities, loss from operations, the presence of overdue accounts payable.