Instructions
Performance measurement capital investments carry out at all stages of planning. When designing any objects, efficiency is determined by two digital indicators (coefficients) - the general and comparative economic efficiency of capital investments. At the same time, overall economic efficiency, as a rule, is a relative value - the effect to the costs required to obtain it.
Along with the coefficient economic efficiency calculate the payback period for future capital investments.
The determination of investment efficiency is determined using the following: E = P/C, where E is the efficiency of capital investments, and P is profit for the expected period (quarter, year, five-year period, more long term). K is your capital attachments in the beginning of construction and development of this enterprise.
If you're counting attachments a large amount of investment in production, complicate the formula somewhat. It has the following form: E = (C – C)/K, where E is the efficiency of the enterprise, C is the price of annual production of goods (excluding taxes), C is the cost of goods produced.
Calculate the payback period of your capital investment. It is calculated as the result of the volume ratio attachments capital investments to profit according to several formulas: T = K/P ( general formula), T = K/(C - C) (in the sphere of production) and T = K/(N - I) (in the sphere of trade).
Compare the results of efficiency calculations with standard indicators of possible efficiency or exactly the same indicators for an earlier period. Capital attachments can be considered cost-effective if, as a result of calculations, the obtained measurement results of overall efficiency are not lower than the standard ones.
Capital investments are part of capital-forming investments, a necessary condition for normal functioning companies. They are also called investments in fixed assets.
Types of capital investments
Capital investments represent long term investment that can provide profits in the future. This is, for example, R&D costs. The following types of capital investments can be distinguished: construction of facilities, expansion of the enterprise through the introduction of new production facilities, reconstruction (reconstruction without the introduction of new capacities) and technical re-equipment (introduction of new technology, modernization). Investments in reconstruction and technical re-equipment have faster economic returns. At the same time, a smaller amount of capital investment is required, and the work is carried out in a short time.
An organization can make capital investments not only in production, but also in human capital. These are, for example, the costs of improving the skills of workers and labor productivity. In this case, the costs can be offset by an increase in the organization's income in the future.
From the point of view of the technological structure, investments in active and passive elements of fixed capital are distinguished. Passive ones include those that do not directly participate in production, but create the necessary conditions for it. This is, for example, investments in buildings and structures.
According to their purpose, capital investments are divided into production (machines, equipment) and non-production (buildings).
According to the method of implementation, capital investments can be carried out economically (on our own) or contracted (with the involvement of third-party companies).
From the point of view of investment sources, capital investments are made through own funds(for deductions from profits, depreciation, from share premiums, charitable contributions), funds and borrowed (loans, accounts payable). Also, sources of financing may include budget subsidies and foreign investments.
Efficiency of capital investments
Before making capital investments, an assessment of their effectiveness in economic and technical terms should always be carried out. In particular, a technical and economic analysis is carried out, including the development of production facilities and marketing research; forecasting financial results investments, as well as general economic analysis.
Based on the results of the analysis, conclusions are drawn regarding changes in various indicators of this activity. This, in particular, is an additional output of capital investments. It is calculated using the formula: (gross production with additional investments - production with initial investments) / (amount of capital investments).
Another analyzed indicator is the reduction in cost per ruble of capital investment. It is calculated as the volume of production after capital investments* (cost per unit of production with initial - with investments made) / (amount of capital investments). Accordingly, the payback period of investments can be calculated using the inverse formula: (amount of capital investments) / volume of production after capital investments * (cost per unit of production with initial - with investments made).
Many people dream of opening their own business, they start it, but suddenly they are faced with the fact that they need much more funds than they thought... Someone takes out loans, someone decides that business is not for him. How to correctly calculate the costs of your business?
Instructions
Firstly, you need to calculate the costs before you have taken at least one step to create it, and not after. Secondly, it is worth remembering that almost any business requires costs, “business without investments” is often just a myth, and you need to soberly assess your financial capabilities.
Registration of an LLC (we will consider it, since it is more expensive) will cost approximately 4,000 rubles if you register the LLC yourself, and 8,000-10,000 thousand if you hire an intermediary company (this option is the most convenient). These amounts include state fees for registration, notary services, bank accounts, production and payment for intermediaries, if you decide to use them. It is worth remembering that the sizes state duties may change and need to be checked (for example, on the website of the 46th Tax Inspectorate - www.nalog.ru).
Registration requires that at least 50% of your account be paid. Currently, the minimum authorized capital of an LLC is 10,000 rubles; it can be contributed either in cash or in property. Please note that amendments are being prepared to Civil Code, which suggest its increase by at least 50 times since 2012. This is being done as part of the fight against fly-by-night companies, but it can hit a simple entrepreneur hard.
At the first stage, you may not need premises to conduct business. It is not uncommon for aspiring entrepreneurs to communicate with their first clients by phone, make appointments in cafes or offices of the same clients, and work on orders at home. However, this most likely cannot continue for long. Not only is the ease of doing business important, it is also important that when registering an LLC you will need to provide the office address. To "mass" addresses tax inspectorates belong to Lately extremely wary. Therefore, it is worth deciding on a place and renting a small room.
You also need to take care of your business - purchasing equipment, organizing communications. At first, it is enough to have a minimum of everything, but are you planning to develop? The same applies to employees: if for the first few months you can work alone with a partner, then later you will need people, at least a secretary.
Naturally, this calculation is only approximate. It all depends on the city in which you do business and market conditions. In addition, it is worth emphasizing that this calculation is suitable when you start to promote your business, i.e. not from the very beginning, since at first you may be working without employees or even an office.
Sources:
- Small business website.
Efficiency in general terms means the degree to which a goal is achieved with minimal cost. The category of efficiency is used in many areas of human activity, but it is invariably a mathematical value and, therefore, can be calculated. From a mathematical point of view, efficiency (or effect) is the ratio of the results obtained to the resources expended. For example, when calculating economic efficiency, the result of the quotient will be the amount of profit per ruble of costs. In order to calculate efficiency, you need to perform the following steps.
Instructions
note
The concepts of “effectiveness” and “efficiency” are very close in meaning, but they should not be confused. Effectiveness refers to how accurately and on time a task is completed. Efficiency shows whether the task was completed with minimal effort.
Calculation of efficiency is the final stage of analysis in order to identify the feasibility or optimality of the phenomenon being studied. It is very important at the preliminary stages to correctly and completely determine the indicators with the help of which efficiency will be calculated in the future.
Instructions
Count yours enterprises for the same period. The company's income comes from what it produces. Profit consists of the amount received from the sale of products for billing period, minus the amount of costs for the production of the goods sold. The greater the profit an enterprise received from the sale of products in relation to the costs incurred for its production, the more efficiency higher.
The introduction of new technologies and modernization of production increase costs. But, at the same time, these expenses affect the improvement of product quality, increase labor productivity, resource conservation and, as a result, increase sales and efficiency enterprises.Count efficiency individual areas aimed at improving product quality and increasing . For example, how effective is this or that technology, how much does shift work improve productivity, etc. Important factors, affecting efficiency enterprises, are also the company's adopted policy, the rational use of attracted funds. Of great importance is the activity of the marketing service, which researches demand and, as well as implements behavioral tactics and increases competitiveness enterprises On the market.
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The speed of return on investment is a key criterion for the attractiveness of a product investment project. The payback period allows the investor to compare different variants business and choose the most suitable one that matches it financial capabilities.
Instructions
Remember that the period is the length of time from the initial stage (implementation of the project) until the moment when it fully pays off. The payback moment is considered to be the time after which the project acquires a positive value and remains so.
The method of calculating investments is to determine the period it will take to recoup the initial cost of the investment. The payback period is an indicator of whether or not the initial investment will be recouped within life cycle project.
There are two ways to calculate the payback period. If the cash receipts from the project are the same for all years, then it can be calculated as follows:
PP = I/CF, where:
RR - project,
I – initial volume of investment in the development of the project,
CF – average annual cost cash receipts from the implementation of the project.
If the cash flow is not the same over the years, then the payback period is calculated in several stages. First, find an integer number of periods over which the cumulative total of the project's revenues will be closest to, but not greater than, the original investment. Then calculate the uncovered balance - the difference between the amount of investment and the amount of cash received. Then divide the uncovered balance by the amount of cash receipts for the next period.
Please note that these methods have some disadvantages. They ignore differences in the value of money over time and the existence of cash flows after the end. In this regard, the payback period is calculated, which is the length of the time period from the initial moment to the moment of payback, taking into account discounting.
Remember that discounting is about present value cash flows that we will receive in the future. In other words, this is a transfer future value money in the present. In this case, the discount rate is determined based on the percentage on risk-free investments based on the percentage on borrowed capital, according to expert assessments etc.
Discounted term payback is the most adequate criterion for assessing attractiveness, since it allows you to incorporate into the project some risks, such as a decrease in income, an increase in costs, the emergence of alternative, most profitable areas of investment, thereby reducing its nominal effectiveness.
Capital investments in accounting- is an investment of a business entity in its fixed capital. Accounting for capital investments has a lot of nuances. This article is about them.
What are capital investments in accounting and what are their distinctive characteristics?
We can find the definition of this concept in Art. 1 of the Law “On investment activities..." dated February 25, 1999 No. 39-FZ. The law classifies capital investments as fixed assets, namely the costs of their creation, acquisition, expansion, reconstruction, design and survey work, etc.
If we turn to clause 4 of PBU 6/01, we will see that an important criterion for fixed assets is their long-term use - more than a year. In turn, the definition of long-term investment is given to us by the accounting regulation, approved by letter of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160. Long-term investments, clause 1.2 of this regulation includes the costs of creating, purchasing, increasing the size of non-current assets that are used for more than one year. At the same time, an important condition is highlighted - such objects cannot be used for sales.
IMPORTANT! Long-term financial investments in securities(including government ones) and authorized capitals other companies.
Capital investments in accounting are accounted for at actual costs incurred (clause 2.1 of the regulations on accounting for long-term investments, clause 8 of PBU 6/01).
If a company is constructing an asset, the following breakdown of capital expenditures is recommended to account for capital expenditures incurred:
- for construction work;
- on installation;
- for the purchase of equipment for installation;
- for the purchase of equipment that does not require installation;
- for the purchase of tools and equipment;
- for the purchase of equipment that requires installation, but is intended for permanent stock;
- for other capital expenditures.
At the same time, before completion construction work total amount The above costs form the cost of the unfinished construction of the asset.
If the company does not create property object, but buys - the situation is simplified: in in this case capital investments in assets will be equal to the amount of actual costs for their acquisition.
Summarizing the nuances we have considered, we can conclude that the defining characteristic of capital investments is their focus on acquisition (or independent creation) investment asset, which will be used for more than 12 months. That is why capital investments are not taken into account as part of current expenses, but are included in initial cost fixed assets. Moreover, this procedure applies to both accounting and tax accounting.
The final result of the investment is the formation of a fixed asset subject to accounting at its original cost. Therefore, for accounting of capital investments, it is necessary to be guided by the norms of PBU 6/01, which is devoted to a detailed description of the rules for accounting for fixed assets.
You can find out what these assets are from the article .
Accounting for capital investments: applicable accounts in accounting
According to the chart of accounts (Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n), an account is used to reflect information on capital expenditures on objects that will subsequently be accepted for accounting as fixed assets. 08 “Investments in non-current assets”. It is on it that all expenses incurred are collected, forming the initial cost of our asset. TO this account There are several sub-accounts for detailed accounting of costs incurred.
Comprehensive information about the account. 08 you will find in our publications:
According to clause 8 of PBU 6/01, the initial cost of purchased fixed assets is formed by the total costs of their acquisition, creation and construction (less VAT and other refundable taxes). In this case, accounting is carried out object by object.
The accounting entry in this case looks like this:
Dt 08 Kt 60.
The rules for forming the initial cost of an asset manufactured by a company independently are given in clause 26 of the guidelines for accounting of fixed assets (Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n). According to the rules, the initial cost of an asset is the actual cost of producing it.
IMPORTANT! The procedure for accounting and forming capital expenditures for the production of fixed assets must correspond to the procedure that is determined for accounting for the costs of the corresponding types of products produced by the company.
The accounting entry for independently created assets will look like this:
Dt 08 Kt 10, 02, 07, 10, 23, 26, 60, 69, 70, 71, 76...
The creation (reconstruction, modernization) of an asset may be associated with the acquisition of equipment that requires its installation, or equipment that cannot be operated without prior installation (classic examples are equipment mounted on a foundation, connecting individual parts of a production line, etc.). Acceptance of such objects for accounting is reflected in the account. 07:
Dt 07 Kt 15, 23, 60, 71, 75, 76, 79, 86, 91.
As property is transferred for installation, it is transferred from the account. 07 on account 08:
Dt 08 Kt 07.
The process of creating a new facility (or reconstructing an existing one) can be very lengthy. This is due, in particular, to the phased method of accepting work, the long-term implementation of trial operation, which is carried out until the planned design parameters are achieved, and many other specific objective factors that take place in construction.
All this may require very large capital expenditures, which can only be accomplished with the help of attracted borrowed money. Interest on them will increase book value capital investments in assets:
Dt 07, 08 Kt 66, 67.
IMPORTANT! This rule applies only to those interests that accrued before the asset was accepted for accounting. After this event, interest is charged to operating expenses (clause 11 of PBU 10/99).
After all capital costs for the facility are fully collected in the account. 08, it is considered ready for use, and its cost is transferred to the account. 01:
Dt 01 Kt 08.
More details about the account. 01 read the material .
Results
Capital investment in accounting is a concept that is inextricably linked with long-term investments and the fixed capital of a company. Accounting for capital investments is carried out according to the rules prescribed by PBU 6/01, Order of the Ministry of Finance dated October 13, 2003 No. 91n and the chart of accounts (Order of the Ministry of Finance dated October 31, 2000 No. 94n).
To create fixed assets in an enterprise, it is necessary to use capital investments. In addition, the size of these investments increases the competitiveness of this enterprise. And the composition and structure of capital investments are directly related to the quality of products, their range, as well as the company’s stability in the market.
Composition and structure of capital investments
This is the main part of capital-forming investments. Most often, capital investments are the basis for the functioning of the enterprise as a whole. By neglecting them, a company can increase its profits for a short period of time. However, in the long term, this risks losing future profits and ability to compete in the market.
To analyze, improve efficiency and account for capital investments, it is necessary to know their structure and composition.
This knowledge helps to obtain more complete information about the dynamics of capital investments, and, accordingly, formulate the company’s investment policy based on real indicators.
The composition of capital investments depends on:
- Forms of ownership- there are investments on behalf of the state, and there are on behalf of the owners, for example, from joint stock company. Government investments are associated with investment policy the state as a whole, and injections from other owners - from the investment policy of a particular enterprise. Government investments are made at the expense of budgets at various levels;
- Nature of reproduction. Depending on what fixed assets are needed for, capital investments are directed to the construction of new facilities, the reconstruction of old ones, the technical re-equipment of production, or its expansion.
- Capital investments can be divided according to cost composition- for construction and installation work, for the acquisition of the necessary tools and equipment, for survey, design and geological work, costs of maintaining the company’s management apparatus;
- Capital investments also depend from his appointment- there are production and non-production.
To analyze the profitability of fixed assets in the future, it is necessary to analyze the structure of capital investments. There are the following types of investment structures:
- Industry- distribution of capital investments by industry. To improve this structure, it is necessary to increase the share of investments in those sectors that ensure the development of the national economy and industry as a whole.
- Territorial- distribution of investments by region.
- Reproductive- distribution of capital investments various shapes playback by estimated cost object. That is, the ratio of costs for new construction, reconstruction, modernization of production in the total amount of investments. To improve this structure, it is necessary to increase the share of investments in the modernization and reconstruction of production.
- Technological- the costs of constructing a new facility and the share of these costs in the cost of work according to the estimate. In order to improve this structure, and, consequently, the share of capital investments per unit of output, it is necessary to increase the share of machinery and equipment in production.
Capital investments in accounting
To account for capital investments, there is account 08 “Non-current assets”. Subaccounts reflect investments in certain fixed assets. This account is active, therefore, its debit reflects all investments in fixed assets in the enterprise. The reflection is cumulative.
The debit balance for account 08 shows total cost OS construction. Separately, each OS object carries out its own analytics.
When drawing up a balance sheet, it is not clear where to include the balance in account 08. IN new form There is no line “construction in progress” in the asset balance sheet. However, you can attach explanations to the balance sheet in the form of a table. An example of the preparation of such explanations is in the appendix to Order No. 66 of the Ministry of Finance.
From the same order it follows that the balance on account 08 must be reflected in line 1150 of the balance sheet “Fixed assets”. But, unfinished investments do not meet the requirements of PBU, and therefore cannot be taken into account along with the operating system. to his by letter No. 03-05-05-01/95 dated December 6, 2011 The Ministry of Finance left the right to choose the accounting of unfinished investments to the organization.
Thus, the enterprise can independently decide whether to include the amount of unfinished capital investments in line 1150 “fixed assets” balance sheet or not. If not included, then it can be reflected in the “non-current assets” section.
Costs and economic efficiency
Capital investment costs must be taken into account for the calculation. Reduce tax base for income tax it is possible through bonus depreciation. To do this, the use of bonus depreciation must be specified in accounting policy companies. The amount of this bonus is also specified.
Capital investments that are taken into account for current expenses reporting period, in an amount not exceeding 10 (30)% - depreciation bonus. To use it, fixed assets must be owned by the enterprise, and they must be divided into depreciation groups.
The economic efficiency of capital investments is determined by the ratio of the costs of producing fixed assets to the results that the enterprise receives during their use.
There are indicators for calculating the economic efficiency of capital investments:
- overall performance indicator- shows how much OS costs pay off at the industry level;
- comparative performance indicator- comparison of several investment projects.
In order to increase economic efficiency, capital investments are directed to those facilities that can bring profit and production growth.
Capital investments- long-term investments in the enterprise. If you know how to use such investments most effectively, you can achieve stable growth in the company's profits in the long term.
Antipova O., postgraduate student of the Department of Business Law, Moscow State Law Academy.
The concept of “investment” unites a complex series of homogeneous economic importance types of social relations, the existing differences of which determine the existence of their multi-level classification within general concept. Since the particular is distinguished from the general by characteristics inherent only in this particular part of the original set, and the entire set as a whole does not possess such characteristics, the study of the particular must begin with establishing criteria for the formation of such a private group.
The basis for classifications can be any feature that is important for the distribution of the objects under study.<*>, however, within the framework of this work we will consider only those of them that indicate distinctive features investments carried out in the form of capital investments, that is, in relation to the group of capital investments they act as grounds for more high level classifications.
<*> For example, P.V. Vorobiev, V.V. Ivanov and V.A. Lyalin classify investments by object, by the nature of the investor’s participation in the investment process, by the investor’s relationship to the investment object, by the period of implementation, by the duration of the operation of investment objects, by the degree of interconnection, by the degree of reliability, by subjective criteria, etc. (See. : Investments: Textbook / S.V. Valdaytsev, P.P. Vorobiev et al. M., 2003. P. 25 - 31).
- Let us recall that in macroeconomics, investments are understood only as those investments that lead to an increase in gross national product- creation of new capital assets <*>. Recognition in microeconomics as investments of investments in monetary obligations and securities certifying them objectively determines the classification of investments based on the place of the investment object in the overall economic turnover. According to this criterion, financial and real investments are distinguished.
Financial investments include those investments, the objects of which, due to their properties, cannot directly participate in the process of creating value. Such investments mediate the transfer of free assets financial investor to the investor who makes real investments. Real investments include investments in objects that can potentially participate in the process of creating new value.
According to the method of making investments, real investments, in turn, can be divided into investments in existing objects and investments in the creation of new objects.
Thus, a bank, providing a loan to a borrower to build a house, carries out financial investment(acquires the right to claim the return of the principal amount and interest), and the borrower, who uses the received funds directly to finance the construction of a house, makes real investments (acquires objects of civil rights (things, intangible assets, rights of claim against the contractor, etc.), the result of which is the investment construction involves the emergence of ownership rights to new real estate) <*>.
<*>See about this: Sharp W., Alexander G., Bailey J. Investments / Trans. from English M., 1997. S. 1 - 2.
Real investments that form the production potential of the investor, depending on the method of consumption of the investment object during its actual use in the production process, which determines the procedure for transferring value to the created products, are divided into investments in objects that can act as objects of fixed or working capital. Note that the sign of division here is precisely the properties of the object (the possibility of its participation in several production cycles and, accordingly, the possibility of attributing its value to the cost of production in parts); these properties are inherent in investment objects a priori and do not depend on the subject of investment. Therefore, we believe that it is impossible to put an equal sign between “objects of fixed or working capital” and “objects that can act as objects of fixed or working capital,” since the first formulation indicates not only the attribute of the investment object, but also a certain status of the subject, violating thus the integrity of this investment classification.
Looking ahead, we note that this remark is of great importance for further analysis due to the fact that the legislator understands capital investments as investments in “fixed capital (fixed assets) ...”, despite the fact that he includes investors, in addition to legal entities, also individuals, state and municipalities.
- Federal Law "On investment activities in Russian Federation carried out in the form of capital investments"<*>(hereinafter referred to as the Law on Capital Investments) defines capital investments as “investments in fixed capital (fixed assets), including costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, purchase of machinery, equipment, tools, inventory, design and survey work and other costs" (Article 1). In our opinion, the legal definition contains a number of points that require clarification, and in order to understand the actual content of the concept of “capital investments”, we believe it is necessary to answer the question of the relationship between the concepts of “fixed capital” and “fixed assets”, “investments in fixed capital” and “capital attachments".
The modern content of the concept of “fixed capital (fixed assets)” in Russia is formulated in the All-Russian Classifier of Fixed Assets<1>, prepared based on the International Standard Industrial Classification of All Types economic activity <2>, International Classification of Main Products<3>, United Nations standards for international system national accounts (SNA). Fixed assets, in accordance with the classifier, are produced assets that are used repeatedly or continuously over a long period, but not less than one year, for the production of goods, provision of market and non-market services<4>.
<1>Resolution of the RF Committee on Standardization, Metrology and Certification dated December 26, 1994 N 359 // All-Russian classifier fixed assets. M.: IPK Standards Publishing House, 1995.
<2>International Standard Industrial Classification of all Economic Activities (ISIC)
<3>Central Product Classification (CPC).
<4>In order to complete tasks accounting current legislation the basis for the classification of real investment objects into objects that can act as fixed or working capital is supplemented with signs minimum term use and minimum cost of the object; as an exception, some objects are classified as working capital direct indication, regardless of compliance with the classification criteria (see clause 50 of the Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 N 34n “On approval of the regulations on accounting and financial statements in the Russian Federation" // Bulletin of normative acts federal bodies executive power No. 23 dated September 14, 1998; Order of the Ministry of Finance of the Russian Federation dated March 30, 2001 N 26n “On approval of the accounting regulations “Accounting for fixed assets” PBU 6/01” // Rossiyskaya Gazeta. 2001. N 91 - 92. May 16).
Fixed assets include two groups of assets: tangible (fixed assets) and intangible fixed assets (intangible assets)<*>.
<*>The classifier includes fixed assets: buildings, structures, machinery and equipment, measuring and control instruments and devices, housing, computer equipment and office equipment, vehicles, tools, production and household equipment, working, productive and breeding livestock, perennial plantings and other types of material fixed assets. To intangible assets - computer software, databases, original works of entertainment, literature or art, high-tech industrial technologies, other intangible fixed assets that are objects of intellectual property, the use of which is limited by the ownership rights established on them.
Thus, the Law on Capital Investments, fixing the wording “fixed capital (fixed assets)”, uses as identical terms that are not such: fixed capital (fixed assets) includes not only fixed assets, but also intangible assets, and identical The concept of "fixed assets" is the concept of "material fixed assets".
The ambiguity of terms used by the legislator to define the object of capital investment underlies the emergence of different approaches to understanding capital investment in practice. Some authors define capital investments as long-term real investments in the creation and reproduction of fixed assets, in tangible and intangible assets<1>. Others note that the concept of “capital investment” is currently considered only as a type of investment in fixed assets.”<2>and “capital investments mean, first of all, investments in emerging fixed assets”<3>.
<1>See, for example: Orlova E.R. Investments: Course of lectures. P. 6; Asset management / Ed. I.I. Mazura. M: Higher School, 2001; Orlova E.R. Investments: Course of lectures. P. 8).
<2>Muravyov B.V. Investment commitment in construction // Dissertation for the Ph.D. degree. legal Sci. M., 2001. P. 30
<3>
When determining the objects of capital investments, it is necessary to remember that such investments are distinguished only according to the characteristics of the objects; the subject composition of this type of investment legal relationship is not limited by the legislator<*>. In this regard, the very formulation “capital investments - investments in fixed assets...” seems incorrect. Fixed capital is objects used for production, owned by an entity that uses them as fixed capital. The rules of law established in relation to objects of fixed capital (fixed assets) are addressed precisely to such entities, the circle of which is narrower than the circle of subjects of investment activity. In order to outline the range of capital investment objects by analogy with objects defined for some entities as “fixed assets”, it is enough to point out the need to apply appropriate criteria to establish capital investment objects. In the future, when referring to fixed assets as objects of investment, we will keep this remark in mind.
<*>Art. 4 of the Law on Capital Investments.
So, returning to the existence of different points of view regarding what the legislator meant by indicating “fixed capital (fixed assets)”, whether only fixed assets or all fixed capital, we note that, in our opinion, capital objects investments should include any objects of fixed capital (fixed assets), since the use of a significant number of objects of fixed assets is impossible without acquiring rights to the corresponding intangible assets (computer equipment - software, databases; tools, mechanisms - industrial technologies). Separating the legal regimes for investments in such interdependent assets would be illogical.
The legislator is not limited to one definition of capital investment objects and in Art. 3 of the Law on Capital Investments returns to this issue again, indicating as objects of capital investments " different kinds property." It seems that the use of the term "property" does not add clarity to the concept of "capital investments." Many legal scholars note its ambiguity and the need for interpretation in relation to the specific norm that uses it<*>. The property includes, for example, cash, which can be classified as investment objects only if they can be hoarded at a value other than their face value.
<*>See: Sukhanov E.A. Civil law // Ed. Sukhanova E.A. 2nd ed. M., 2000. T. 1. P. 300; Sergeev A.P. Civil Law: 6th Edition. M., 2003. T. 1. P. 274.
- To classify investments as capital investments, in addition to directly indicating the objects of investment, the legislator also uses the sign of the method of making investments, while the lists of methods specified in Art. 1 of the Law on Capital Investments when determining capital investments and in Art. 3 of this Law when determining capital investment objects do not coincide. In the first case, the costs of “new construction, expansion, reconstruction and technical re-equipment of existing enterprises” are named as ways of making capital investments<*>, acquisition of machinery, equipment, tools, inventory, design and survey work and other costs." In the second - the creation and (or) modernization (improvement of previously accepted performance indicators) of property.
S.S. Shcherbinin believes that capital investments should include investments made only in “forming fixed assets, otherwise such investments would lose their specific meaning and would turn into an element of purchase and sale or other transactions”<*>. It seems that the formation of fixed assets legal entity, an entrepreneur can be carried out, including through their acquisition under a purchase and sale agreement, and such a method of investment as the cost of creating or modernizing objects is typical only for a part of capital investments and cannot be applied to their entirety. For example, capital investments in such fixed assets as land, cannot be realized in the form of creation at all.
<*>Shcherbinin S.S. Commentary on the Law on investment activities in the Russian Federation carried out in the form of capital investments. M., 2003. P. 28.
In order to determine whether the method of making investments is a criterion for determining capital investments as a type of investment in fixed assets or whether capital investments themselves can be classified into types according to the method of their implementation, it is necessary to analyze the norms of the legislation on accounting, to the conceptual apparatus of which, in fact, refers to the term “capital investments”, as well as the norms of budget legislation establishing the types of investments made by public entities<*>.
<*>Comparison of the composition of capital investments provided for organizations, on the one hand, and for the state and municipalities- on the other hand, it is not entirely correct, due to their incomparability both in terms of the formation and accounting of income and property of these entities, and in terms of the purpose and order of expenditure. However, within the framework of this study, such a comparison is of interest, since, taking part in investment activities that fall within the scope of the provisions of the Law on Capital Investments, these entities must act within the framework of a single legal field and according to uniform rules, for the sake of establishing which we are attempting to analyze .
In the legislation of the USSR, capital investments were understood as a collective category of expenses of organizations for the acquisition of certain assets. Capital investments, in particular, included the costs of construction and acquisition of fixed assets under property transfer agreements<*>. In different historical periods, the composition of objects analytical accounting capital investments changed, but never came down solely to the creation of new fixed assets or the modernization of existing ones.
<*>On this, for example, see: Resolution of the Council of Ministers of the USSR dated April 28, 1970 N 282 “On the procedure for financing capital investments from settlement, current and budget accounts” // Code of Laws of the USSR. 1990. T. 6. P. 164; The standard structure of codes for synthetic accounts and the objects of their analytical accounting was approved by letter of the Ministry of Finance of the USSR N 35 and the Central Statistical Office of the USSR dated 02/20/81 N 34-Р/426 "О methodological guidelines on organizing accounting using computer technology" // Legal database: ConsultantPlus.
In the current Chart of Accounts for accounting of financial and economic activities of organizations<*>the name of the synthetic account “capital investments” was replaced by “investments in non-current assets”<**>. Such investments include the costs of acquiring fixed assets, intangible assets and construction of fixed assets, carrying out research, development and technological work, acquisition of adult animals and transfer of young animals to the main herd<***>. Thus, capital investments in this classification of expenses include the acquisition of any fixed assets (fixed assets and intangible assets), as well as costs: for the creation, firstly, of those fixed assets that are the result construction activities(buildings, structures); secondly, for the creation of intangible assets (results of research work, etc.). However, the creation of fixed assets that are not buildings or structures is not included in the number of capital investments; accordingly, capital investments are not identical to investments in fixed assets.
<*>Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 N 94n “On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and instructions for its application” with subsequent amendments // Economics and Life. 2000. N 46.
<**>The fact that there was only a change of terms, but not a change in the grouping as such, in our opinion, is confirmed by the further use of the wording “capital investments in non-current assets” (see Order of the Ministry of Finance dated 12/08/03 N 113n “On the forms of accounting statements of insurance organizations and reporting provided in the manner of supervision" // Bulletin of normative acts of federal executive authorities. 2004. N 9. March 1; Order of the State Statistics Committee of the Russian Federation N 475, Ministry of Finance of the Russian Federation N 102n dated November 14, 2003 "On codes of indicators of annual financial statements of organizations, data on which are subject to processing by state statistics bodies" // Rossiyskaya Gazeta. 2003. N 259. December 25.
<***>This type of capital investment, such as the transfer of young animals to the main herd, is not highlighted by us due to its exclusive application to only objects - objects of the animal world. This is due to the fact that the acquisition of productive functions by such objects and, accordingly, the emergence of the possibility of using them as a means of production depends not on human activity, but on the development of the living organism as such. A person only documents the moment when the possibility of using an animal for production purposes arises.
Due to the specific nature of certain types of economic activity, accounting legislation is targeted in nature and contains various provisions aimed at certain groups of entities, depending on the scope of their activities and other reasons, which is manifested, among other things, in the duality of the system of bodies authorized carry out rule-making in this area<*>. Grouping of capital investment objects established for credit institutions Central Bank RF, has a content different from that provided by the Ministry of Finance of the Russian Federation for other organizations in the specified Chart of Accounts.
<*>Accounting and reporting rules for credit institutions are established by the Bank of Russia (Article 40 Federal Law dated 02.12.90 N 395-1 “On banks and banking"// Rossiyskaya Gazeta. 1996. N 27. 10 February), accounting of insurance organizations has its own characteristics (Article 28 of the Law of the Russian Federation dated November 27, 1992. N 4015-1 "On the organization of insurance business in the Russian Federation" // Russian newspaper, 1993, No. 6, January 12).
Accounting rules in credit organizations capital investments include costs of construction (construction), creation (manufacturing) and acquisition of fixed assets and intangible assets<*>.
<*>See: P. 6.20. Part II of the Rules for maintaining accounting records in credit institutions located on the territory of the Russian Federation, approved by letter of the Central Bank of the Russian Federation dated December 5, 2002 N 205-P // Bulletin of the Bank of Russia. 2002. N 70 - 71. December 25.
Thus, here the concept of “capital investments” is equivalent to investments in fixed assets.
In our opinion, differences in the regulation of the composition of capital investments of credit and other organizations are caused more by inconsistency in the approach of regulatory bodies to resolving this issue than by the presence of objective grounds.
Investments by the state and municipalities are made at the expense of the corresponding budgets. The Budget Code of the Russian Federation provides, as part of capital expenditures of budgets, expenses that support investment activities, including expenses, the implementation of which creates or increases property owned by the Russian Federation, constituent entities of the Russian Federation, and municipalities, respectively (Article 67)<*>. The economic classification of budget expenditures of the Russian Federation as part of capital expenditures provides for capital investments in fixed assets, which include their acquisition, modernization, capital construction and major repairs<**>. The position of the legislator is not entirely consistent - despite the fact that the Budget Code provides for capital expenditures on the creation of property, and therefore fixed assets, the classification of the corresponding article, with the exception of the construction of buildings and structures, does not provide for capital investments in fixed assets, either within the subgroup, nor within the entire group of capital expenditures. The legislation does not contain criteria for classifying objects as fixed assets in relation to public entities. IN economic classification budget expenditures as objects of fixed assets are equipment and durable items, buildings and structures (construction projects and overhaul), while the duration of use is not indicated in any way.
<*>Budget Code of the Russian Federation dated July 31, 1998 N 145-FZ // Collection of legislation of the Russian Federation. N 31. 03.08.98. Art. 3823.
<**>Federal Law of August 15, 1996 N 115-FZ "On budget classification Russian Federation" // Collection of legislation of the Russian Federation. N 32. 08/07/2000. Art. 3338.
It seems that, due to the presence of significant gaps in budget legislation, the attribution budget expenditures in the category of capital investments cannot be carried out otherwise than by applying, by analogy, the rules for determining the composition of fixed assets established for legal entities.
- Summarizing what has been said, it can be stated that the concept of “capital investments” is not disclosed in the Law on Capital Investments and does not have a uniform content in the rules governing the accounting of the corresponding expenses of various investors. Objects of capital investments and methods of their implementation in accounting are defined ambiguously, their composition has variants of content depending on the types of entities making investments, and the term “capital investments” itself is disclosed today only in regulations regulating accounting in credit institutions. Budget legislation does not contain norms allowing to establish the exact range of objects of state and municipal capital investments.
Inaccuracies in the legal definition do not allow potential investors to reliably assess the possibility of applying special guarantees and benefits provided for capital investments to the proposed investments, which may negatively affect the decision to make them<*>. The very name of the Law “On investment activities carried out in the form of capital investments,” taking into account the analysis of the terms used by the legislator, contains a logical error, since its meaning is reduced to “investment activities carried out in the form of investments in fixed assets.” Investment activity cannot take the form of investments (investment relations), since these concepts have a common meaning. It seems more correct to call it the Law on Capital Investments.
<*>The importance of the certainty of concepts used in legal acts was noted by E.V. Syrykh, who points out that “a defective definition of a concept complicates the implementation of not only the law containing such a definition, but also other laws that use a concept endowed with a defective definition, and ultimately introduces uncertainty into the legislation as a whole” (Syrykh E.V. General criteria for the quality of law // Thesis for the degree of candidate of legal sciences. M., 2001. P. 119). The definition of capital investment has important not only in the sphere of their actual implementation. For example, depending on the fact that financial-industrial groups make capital investments on the territory of the Commonwealth of Independent States, there is a need to register them as transnational financial-industrial groups in the territory where such investments are made (Article 4 of the Federal Law of November 30, 1995 N 190-FZ "On Financial-Industrial industrial groups" // Russian newspaper. 1995. N 236. December 6).
Having summarized the results of a study of the characteristics of capital investments addressed to various subjects of investment activity, in order to create a unified legal field for all entities making such investments, we believe it is necessary to make changes to the legal definition of capital investments.
We believe that capital investments can be defined as investments in the creation, as well as in the acquisition and modernization of existing facilities that meet the criteria established by law for determining the composition of fixed capital (fixed assets and intangible assets).
By proposing such a definition of the concept of “capital investments,” we proceed from the historical affiliation of this term to accounting legislation. But it would be more correct to establish the meaning of this term in the legislation regulating investment relations by simply listing the objects in which investments are made within the framework of a given group of relations and, accordingly, are subject to the relevant legal norms. Such an approach would eliminate the need for subjects of investment activity to understand the meaning of the term “capital investments” by disclosing the content of another term “object of fixed capital.”
– these are investments in new construction, expansion, reconstruction, technical re-equipment and maintenance of existing production, as well as investments in the creation of inventories, the increase in working capital and intangible assets.
Capital investments- an integral part of capital-forming investments. They represent costs allocated to the creation and reproduction of fixed assets. Capital investments are a necessary condition for the existence of an enterprise. By neglecting them, a company can increase its profits in the short term, but in the long term this will lead to loss of profit and the inability of the enterprise to compete in the market.
Capital investments include: costs of construction and installation work; costs for the acquisition of fixed assets (machines, machinery, equipment); costs for research and development (R&D), design and survey work, etc.; investments in labor resources; other costs.
Main purpose of capital investments– commissioning new and maintaining existing production facilities, improving conditions and increasing labor productivity, environmental protection and rational use natural resources, development of new types of products and improvement of their quality.
Capital investments can be: general - their total amount in this object attachments; new - without taking into account the use of existing production assets; additional, determined by the difference in total capital investments for two solution options economic task(for example, when choosing options for new equipment, reconstruction of enterprises, etc.); conjugate, i.e. those that increase in related industries in the absence of capacity reserves; accompanying, necessary for the normal functioning of the consumer’s means of labor (for example, the costs of constructing buildings and structures for the operation of new equipment, expanding the repair base, etc.).
The need for capital investments is always great, but the sources of their financing - credit, state budget funds, enterprise profits, depreciation and others - are limited, so they should be used effectively, obtaining the maximum result for every ruble spent.
The most important areas for using capital investments are:
- new construction, i.e. construction of new enterprises on newly developed areas;
- expansion of existing enterprises through the construction of their second and subsequent stages, commissioning of additional workshops and production facilities, expansion of already functioning main and auxiliary workshops;
- reconstruction, i.e., partial or complete reconstruction of production carried out in the course of the enterprise’s activities without the construction of new or expansion of existing main workshops. Reconstruction also includes the expansion of existing and constructed new auxiliary facilities, the construction of new workshops to replace the liquidated ones;
- technical re-equipment of an existing enterprise, i.e. increasing the technical level of individual production areas and units through the introduction of new equipment and technology, mechanization and automation, and modernization processes of worn-out equipment.