Net assets (asset) is owned by the enterprise, and can be freely disposed of assets, that is, owner's equity.
First, the enterprise's net assets (asset value), refers to the enterprise's total assets minus liabilities after the net, which consists of two major components, part of the enterprise to start the initial investment in the capital, including the part of the premium, and the other part of the enterprise in the operation of the creation, including the acceptance of donations to the assets, belonging to the owner's equity.
Second, net assets is the owner's equity, refers to the owner of the assets of the enterprise to enjoy the economic benefits, the amount of assets minus liabilities after the balance. Owners' equity includes paid-in capital (or share capital), capital surplus, surplus and undistributed profits. The formula is: net assets = owner's equity (including paid-in capital or share capital, capital surplus, surplus and undistributed profits, etc.) = total assets - total liabilities.
Note: If the entity view of profits is adopted, net assets are equal to shareholders' equity plus claims; if the ownership view of profits is adopted, net assets are equal to shareholders' equity.
What is owner's equity? What does net assets refer to in it?
1, owner's equity is the residual interest attributable to the owner after assets are deducted from liabilities. That is, an accounting entity in a certain period of time owned or can control the net amount of resources with future economic benefits. The so-called net assets, in quantity equal to all the assets of the enterprise minus all the liabilities of the balance, which can be expressed by the deformation of the accounting constant equation, namely: assets - liabilities = owners' equity. Sources include capital invested by owners, gains and losses directly recognized in owners' equity, retained earnings and so on. 2, net assets = total assets - total liabilities. Generally, the amount of net assets is equal to the owner's equity or shareholders' equity. Including: paid-in capital, capital surplus, surplus distribution, undistributed profits, etc. Supplementary answer: 3, net assets are owned by the enterprise, and can be freely disposed of assets, both owners' equity. It consists of two major components, part of the enterprise was initially invested in the capital, including the premium part, the other part of the enterprise in the operation of the creation of the assets, including the acceptance of donations. Net assets = assets - liabilities, subject to the impact of annual profits and losses and increase or decrease. The amount of owner's equity at the end of the period "does not equal or represent" the market value of net assets. Since it is the market value (usually the current market value), it is of course "not equal to or representative of" the amount of ownership interest at the end of the period (in this case, historical cost). According to the shareholders of the company's responsibility for different, can be divided into five categories: (1) unlimited company, that is, all shareholders regardless of the amount of capital, are required to assume unlimited joint and several liability for the company's debts; (2) limited liability company, all shareholders are limited to the amount of their contributions to the company's debt obligations of the company; (3) the two companies, the unlimited liability of the shareholders and limited liability of the shareholders*** with the composition of the company; (4) limited liability company (4) limited liability company, the entire capital is divided into equal shares, all shareholders are liable for the company's debts to the extent of their shares; (5) shares of the two companies, the unlimited liability shares and limited liability shareholders *** with the composition of the company. This method of division is the most basic method of division of the company .
What is net worth
It is an asset that belongs to the enterprise and can be freely disposed of, i.e., owner's equity. It consists of two major components, one is the capital invested in the beginning of the enterprise, including the part of the premium, the other part of the enterprise in the operation of the creation, including the donation of assets.
Net assets = assets - liabilities, subject to annual profit and loss
The amount of owner's equity at the end of the period is "not equal to or representative of" the market value of net assets.
Since it is the market value (usually the current market value), of course it is "not equal to or representative of" the amount of ownership interest at the end of the period (in this case, historical cost).
Net assets are owner's equity, which is the owner's economic interest in the assets of the business, in the amount of assets less liabilities. Owners' equity includes paid-in capital (or share capital), capital surplus, surplus and undistributed profits.
The formula is: net assets = owners' equity (including paid-in capital or share capital, capital surplus, surplus and undistributed profits, etc.) = total assets - total liabilities.
Net assets are the excess of assets over liabilities of the enterprise group, i.e. the net value of all assets minus all liabilities. Net assets represent the value of the property of the owners of the enterprise group (business owners or shareholders) in the enterprise. It includes share capital, provident fund (surplus fund, capital reserve), undistributed profit, etc. Since the net asset value of the enterprise group belongs to the shareholders, it is called "shareholders' equity" in accounting. It is an important indicator of the operating performance of the enterprise group.
Net assets are affected by the owner's original investment, additional investment, profits and losses incurred by the enterprise group subsequently, and the amount withdrawn from the rolled-over profits or investment. Only tangible assets are included in the data underlying this program to reflect the magnitude of the enterprise group's shareholders' equity and credit risk. As for intangible assets such as enterprise group reputation and patent rights, they are not involved in the calculation for the time being.
Considering the fact that the comprehensive strength evaluation should reflect the continuous and smooth development of the enterprise group, the net assets are calculated on the basis of the average value at the end of three years. That is:
Net assets = (net assets at the end of the current year + net assets at the end of the previous year + net assets at the end of the year two years ago) ÷ 3
The year in the calculation formula is defined as the same as turnover.
Net assets are equal to shareholders' equity plus debt if the entity view of profits is adopted, or shareholders' equity if the ownership view of profits is adopted.
What is Return on Equity?
The return on equity is the percentage of a company's profit after tax divided by its net assets, and measures the efficiency with which a company utilizes its own capital. It is a measure of how efficiently a company utilizes the capital invested by its shareholders. It compensates for the shortcomings of the profit after tax per share measure. Example. When a company gives bonus shares to its original shareholders, the earnings per share will fall. This creates an illusion among investors that the company's profitability has declined, but in fact, the company's profitability has not changed, it is more appropriate to use the return on equity to analyze the company's profitability. Return on net assets formula: return on net assets = net profit / average shareholders' equity return on net assets refers to the amount of profit and the average shareholders' equity ratio, the higher the indicator, the higher the return on investment.
What is net worth
The net worth of an enterprise is the net amount of the total assets of the enterprise minus its liabilities, which is quantitatively equal to the balance of all assets minus all liabilities of the enterprise. It is classified as owner's equity. Net assets is the owner's equity in the balance sheet . It is an asset that is owned by the enterprise and is freely disposable. It consists of two major components, one is the initial capital investment, including the premium part of the enterprise, the other part is the enterprise in the operation of the creation, but also includes the donation of assets. Net worth is a company's own capital, and in the case of a joint-stock company, net worth is the property owned by the shareholders, which is now commonly referred to as shareholders' equity. Net worth is the total assets minus the company's external liabilities. Net assets
Other related definitions: 1, the concept and content of administrative unit net assets The net assets of the administrative unit is the difference between the administrative unit's assets minus liabilities and revenues minus expenditures, including fixed funds, balances and so on. 2, the concept and content of the net assets of the business unit The net assets of the business unit are the difference between assets minus liabilities, including business funds, fixed funds, special-purpose funds, and balances. The net assets of an institution specifically include business funds, fixed funds, special-purpose funds, business balances and operating balances. Among them, special-purpose funds refer to the funds with special purposes set up by the institutions in accordance with the regulations, mainly including employee welfare funds, medical funds, repair and purchase funds, housing funds, etc. 3. The net assets of a private non-profit organization is the balance of assets minus liabilities, which indicates the difference between the total assets of the private non-profit organization after offsetting all existing obligations. The formula can be expressed as: assets - liabilities = net assets.
What is net worth? What is the difference between it and total assets?
Net assets (asset), refers to the assets that belong to the enterprise, and can be freely disposed of, that is, the owner's equity or equity capital.
Difference
First, the classification is different
1, net assets in accordance with its use is restricted or not, can be divided into: restricted net assets unrestricted net assets
2, total assets
(1) in accordance with the period of time for which the assets are held different, the total assets are composed of current assets and long-term assets. The former, such as monetary assets, inventories, receivables, etc., and the latter, such as long-term investments, buildings and equipment.
(2) According to the different turnover characteristics of assets, total assets consist of current assets, long-term investments, fixed assets, intangible assets and deferred assets.
(3) According to the different forms of assets, total assets consist of financial and non-financial assets, tangible and intangible assets.
Second, the assets are recognized differently
1, net assets
(1) the concept and content of the net assets of the administrative unit: the net assets of the administrative unit refers to the administrative unit's assets minus liabilities and the difference between revenues minus expenditures, including the fixed funds, balances and so on.
(2) the concept and content of the net assets of the institutions:
The net assets of the institutions are the difference between assets minus liabilities, including business funds, fixed funds, special funds, balances, etc..
The net assets of an undertaking specifically include the undertaking fund, fixed fund, special fund, undertaking balance and operating balance. Among them, the special fund refers to the funds set up by the enterprise unit in accordance with the provisions of the withdrawal of funds with special purposes, including employee welfare funds, medical funds, repair and purchase funds, housing funds and so on.
(3) the net assets of private non-profit organizations, refers to the balance of assets minus liabilities, which indicates that the total assets of private non-profit organizations after offsetting all existing obligations, the difference. It can be expressed by the formula: assets - liabilities = net assets.
2, total assets
(1) the ownership of the resource. For example, the assets leased from outside organizations in the form of operating leases are not the unit's assets, because the ownership of this asset does not belong to the enterprise.
(2) whether the resource is owned or controlled by the unit. For example, the payment of goods to the outside world, but the goods have not yet been issued, the goods can not be recognized as an asset of the enterprise for the time being. Because the goods are not yet owned or controlled by the enterprise.
(3) the economic resources can bring economic benefits for the unit. For example, some of the machinery and equipment has been scrapped, has not been able to bring economic benefits for the unit, it can not be recognized as an asset in accounting.
Third, the nature of the different
1, net assets are owned by the enterprise, and can be freely disposed of assets, that is, owner's equity or equity capital.
2, total assets refers to all assets owned or controlled by an economic entity that can bring economic benefits. Generally, it can be assumed that the amount of total assets of an accounting entity is equal to the amount of its balance sheet "total assets".