Fixed assets are the main strength of an enterprise

To implement a coherent process of production, any enterprise needs the presence of such components as the labor force, objects of labor and, as one of the unchanging elements, the means of labor. The last two elements are means of production, represented in physical terms. There is also a valuation of the totality of objects and means of labor. Their monetary expression is represented by such a concept as funds. There is a division of this element into two parameters:

• By the degree of his direct participation in the activities of the enterprise for the production of products or services;
• On the percentage of the transfer of its value to the value of the product produced.

Analysis of these characteristics gives grounds for subdividing all means of labor into working capital and fixed assets. This is their main classification. There is also a huge number of signs that separate each group separately.

The revolving funds of an enterprise are assets that are used in the process of producing a product or providing a service and completely give their value to the final result. These objects and facilities include a variety of materials and raw materials, seeds, fuel and lubricants, chemicals and so on.

Fixed assets are a certain part of assets that are directly involved in the production process of the product and give its value to this result in parts (depending on depreciation). They are the factor driving the development of the country's economy and increasing the growth of the gross domestic product.

According to their functional purpose, they distinguish:

• Basic production assets (OPF);
• Basic non-productive funds (ONF).

The latter group represents those objects that do not participate directly in the main activity of the organization, but provide services of a domestic nature. These include hospitals, kindergartens, hospitals, clubs, etc.

Production fixed assets are a certain proportion of the means of labor that meet one of the following requirements:

• Direct participation in the production process;
• Creating suitable conditions for this;
• Use for the purpose of storing / moving not only the means, but also the objects of labor themselves.

The basic production assets represent the aggregate of the following types of objects:

• Industrial guild buildings;
• Various structures;
• Machine tools, equipment and machinery;
• Transfer devices (a variety of power lines, gas pipelines, water pipes, etc.);
• transport;
• Working (without fattening) and productive livestock;
• Tools, which include mechanical, electrical, pneumatic and other tools;
• Inventory of production and economic nature;
• Seedlings and trees, as well as perennial plantations;
• All costs associated with irrigation, drainage and land reclamation (capital costs).

Fixed assets are the basis for increasing the volume of products produced by the enterprise. In this case, they can be considered from the point of view of the degree of influence on the final result. In this case, active and passive OPF are distinguished. Judging by the name, one can already guess that the former have a direct and great influence on the subject of labor (machine tools, equipment, power networks, etc.). All other funds are passive. Such examples are buildings, structures and so on.

By ownership distinguish their own and rental fixed assets. In accounting, analysis and audit, the classification of OPF into inventory and non-inventory is applied. The latter represent land (land, water, forest) and capital investments. Inventory ones are those which, roughly speaking, can be counted and which have a real form.