Introduction
1. Fixed assets, their composition, structure, evaluation and re-evaluation, depreciation and amortization. Problems of using modern technical base of enterprises
2. The reproduction of fixed assets. The composition and structure of the investment. The structure, investment policy and their role in improving the efficiency of capital investments. Competitive selection of investment projects
3. Ownership and sources of investment. Leasing. Foreign investment. Repair of fixed assets and its sources
4. Financial investment. Securities as the object of financial investment. Portfolio management
5. The role of financial services in the mobilization of financial resources and their effective use for investment
Conclusion
Sources
Introduction
Asset management is the most important task of a modern capital-intensive enterprise. A significant portion of its costs associated with the maintenance of assets (machinery, equipment, buildings) in good working order, and this activity is carried out under strict conditions: on the one hand - to the terms, timing and quality of maintenance and repair, on the other hand - to the volume of material, financial and human resources. Management function in this area by a skilled technician, technical management, the area of responsibility of which - the effectiveness of the processes of maintenance and repair.
Creating capital and ensuring the competitiveness of producers in the domestic and export markets are impossible without investment. Exclusively through investment processes are performed structural and qualitative renewal of the world commodity production and market infrastructure. The more intense the investment is realized, the faster the reproductive process, the more effective market transformation occurs.
Before the objective need for increased investment in the creation of competitive economic systems, upgrading and rehabilitation of existing structures, ensuring the diversification of capital towards socially-oriented structural reforms set in today's time, many countries of the world.
Investments have a central role at both the macro and micro levels. They are one of the key drivers of the economy, as well as determine the future of the country as a whole, individual subject company. In the area of training of specialists in economics research investment is an important step.
The aim of the course work - study methodology asset management.
The first chapter deals with the essence. Composition, structure, fixed assets, their valuation and revaluation, depreciation, and problems of the use of modern technical facilities.
To maximize the impact of the equity capital required constant reproduction of fixed assets. This can be done at the expense of investment. The second chapter is devoted to the investment of their composition, structure, selection of investment projects, as well as structural and investment policy.
The third chapter deals with the forms of ownership and sources of investment. Much attention is paid to the leasing as a form of property.
The fourth chapter describes the main aspects related to financial investments. As an object of financial investment are considered securities. Set out the nature of the securities portfolio and the basic principles of management.
To mobilize financial resources and their effective use in enterprises are financial services. Their role in this process, the fifth chapter is devoted to course work.
Knowing the main capital management techniques, managers will be able to get the maximum profit from the use of assets with minimum investment in their reproduction. This can be achieved by studying the process of the most effective investment in fixed assets.
1. Fixed assets, their composition, structure, evaluation and re-evaluation, depreciation and amortization. Problems of using modern technical base of enterprises
Fixed assets (PF) companies - a set of tangible assets (means of production), which transfer their value during the manufacturing process, in part to made production. [1]
By the nature of participation in the process of reproduction of PF are divided into two groups:
Production of PF, which are involved in the production process, and in turn, are divided into two parts: active - are directly involved in the production process (machinery, equipment, etc.); passive - create the conditions for the normal course of the production process (buildings ).
Non-production of PF, which do not participate in the production process and are intended for immediate consumption (hospitals, housing).
Depending on the purpose and functions of PF is divided into the following types:
Buildings (workshops, depots, garages, warehouses)
Buildings (w / rail tracks, mines, wells, bridges)
Transfer devices (oil, gas, water, heat, electricity)
Machinery and equipment (power machines, containers, computers)
Vehicles (cars, boats)
Tools of all kinds,
Production equipment (desks, containers)
Household equipment,
Working cattle,
Perennial plants,
Capital expenditures for land improvement,
Other RP.
Depreciation - by shifting part of the cost of PF on manufactured product or a service.
In the world practice different approaches to the calculation of wear (the amounts of depreciation write-downs, charges) and the definition of net book value.
As a base to bind with the wear and tear, most often the estimated time of operation of the equipment (useful life of its life), at least - the expected workload.
Important from an economic point of view in determining the amount of depreciation is the account of the principle of the disparity of money over time. Some methods are based on this principle, others do not account for it, so there are methods of providing for interest on the amount of depreciation and does not provide for it.
Naturally, different methods of determining the damping lead to different results. This obviously is some arbitrariness of the results. However, the choice of the method, if any, provides some flexibility, takes into account the characteristics of the working environment. [1]
The initial cost of PF is defined as the sum of the value of the purchased equipment, transportation costs, installation costs. [5]
The residual value of - the value of the retirement of the balance sheet.
Net book value of - the cost for depreciation.
Full replacement cost of the building is the amount of funds required for its complete restoration in the original form (old design), given the current prices of construction works, materials and construction, trade margins and transport tariffs.
Full replacement value of plant and equipment experts conducting the reassessment may decide to increase or to decrease the replacement value of fixed assets. this is the total price of the acquisition of functional analogues on the market.
Experts conducting the reassessment may decide to increase or to decrease the replacement value of fixed assets.
The increase in the replacement cost may be due to inconsistencies book value of fixed assets and their fair market value. The decrease, in turn, can be caused by a clear overestimation of the value of fixed assets (if not correctly applied the revaluation coefficients in prior periods) or mismatch value on the balance sheet and the fair market value of the building or structure.
Increase in value of assets entails an increase in depreciation and accordingly decrease the tax base for the calculation of income tax.
Reducing the cost leads to a decrease in property tax but, on the other hand, a decrease in depreciation and amortization. [2]
Speaking on condition of fixed assets in Russia usually mention their strong deterioration, as well as that rare company now pays enough attention to the management of this resource.
Depreciation of fixed assets in our country has become a problem in many enterprises. Here is one example. Last summer, at a meeting of the commission headed by First Deputy Prime Minister Dmitry Medvedev discussed the status of the distribution network television. This question was raised not by chance: 80% of the equipment used to broadcast nation-wide and state-owned television and radio programs, has developed a technical resource. Man-made disaster is most likely not cause, but the development process of accidents, if not avoided, provided.
Of course, not only Russia is using the old equipment, sometimes half a century ago. In Western countries, and even in the United States, operated equipment, whose age is 50-60 years. No one there about not sounding the alarm, because, first, the lifespan of certain fixed assets, founded in the design, can reach 80 years. Second, the state of the equipment at the western companies carefully monitored, monitoring and implementing serious time making the necessary repairs.
Enterprise managers need to solve existing problems in fixed assets. For this it is necessary to effectively manage capital assets. An important role is played here by the organization of reproduction of fixed assets through investment.
2. The reproduction of fixed assets. The composition and structure of the investment. The structure, investment policy and their role in improving the efficiency of capital investments. Competitive selection of investment projects
Reproduction of fixed assets - it is a continuous process of updating through the acquisition of new technologies, the modernization and renovation. The main goal - is to maintain fixed assets in working order.
In the process of reproduction of fixed assets following tasks: compensation for various reasons disposal of fixed assets, an increase in the number and weight of the fixed assets in order to increase the volume of production, improvement and increase the technical level of production.
The process of reproduction of fixed assets may be carried out by a variety of sources. Premises and equipment for the reproduction of the enterprise may enter via the following channels: a contribution to the authorized capital, as a result of capital investment, resulting in the donation, lease.
Quantitative characterization of reproduction of fixed assets during the year is reflected in the balance of fixed assets for the full cost as follows:
^ K = F n. + F in. - F l.
where ^ k - the value of PF at the end of the year, F n. - The cost of PF at the beginning of the year, in F. - The cost of PF, put into effect in a year, F l. - The cost of PF, liquidated during the year.
For a more detailed analysis of the use of indicators: rate of renewal of PF, PF retirement rate, the capital-labor, technical development of labor, etc.
To Excess of upd. Compared with R SEL. Suggests that the process of renewal of fixed assets. [3]
Reproduction of fixed assets at the expense of investment. Investment (capital expenditure) - a set of costs of material, labor and financial resources devoted to the expanded reproduction of capital assets.
The main objective of investing - embedding material and financial resources in capital construction, renovation or modernization of the site intended for production activities, subject to financial obligations.
Investments made in new and reproduction of existing fixed assets without investing in the needs of current assets are in the form of capital investment. Capital expenditures account for the major part of all the tools that provide simple and expanded reproduction of capital assets. This includes all capital expenditures for growth and compensation depreciation of fixed assets, including the cost of major repairs and modernization of fixed assets.
Investments are classified in relation to the application object, the nature of the use and the time factor.
Regarding the application object:
1. Investment in property (tangible investments - investments that are directly involved in the production process (for example, investment in equipment, buildings, stocks of materials).
2. Financial investments - investments in financial assets, the acquisition of rights to participate in the affairs of other firms and business rights (such as the acquisition of shares and other securities).
3. Intangible investments - investments in intangible assets (for example, investment in training, research and development, advertising, etc.).
By the nature of the use:
initial investment, or net investments made at the base or the purchase of the enterprise;
investment in the expansion of (extensive investments) allocated for the expansion of production capacity;
reinvestments, ie the use of free income derived from the sale of the investment project, by sending them to purchase or a stock of new means of production in order to maintain the structure of the fixed assets of the enterprise;
investments to replace, resulting in the existing equipment is replaced with a new one;
investments to rationalize directed to the modernization of technological equipment or processes;
investment to change the program output;
investment diversification related to changes in the product range, the creation of new products and new markets for the organization;
investments to ensure the survival of the business in the long term directed to research and development, training, advertising, protection of the environment;
Gross investments, consisting of net investment and reinvestment.
By the time factor release the long-term, medium-term and short-term investments.
To improve the efficiency of capital investments necessary to conduct a competent structural and investment policy.
Under the structural policy is a system of measures aimed at the systematic restructuring of production in accordance with the progressive shifts in science, engineering and technology with regard to social and individual needs. Usually there are the following forms of the structure of capital investments:
a) the reproductive structure of capital investments: modernization, reconstruction of existing enterprises, new construction;
b) the technological structure of capital investments: buildings, structures, transmission devices, power machinery and equipment, measuring and control instruments, computers, vehicles;
c) the industrial structure;
g) The territorial structure.
Attracting investment in the company for the investment process - an important factor in the reproduction of capital. A basic element of this work is to develop an investment policy for any enterprise.
Among the key elements of the investment policy of the company are the following: the definition of the strategic objectives of the company, forecast market conditions and prioritization of investments, analysis of economic performance and investment activities of the company; investment planning, the choice between the investment programs, provision of resources investment.
According to the Order of the Ministry of Economy of the Russian Federation № 118 of October 1, 1997 (which approved the "Guidelines for the development of an investment policy of the company"), the development of the investment policy of the company is expedient to provide:
compliance measures to be implemented within the framework of this policy, legislative and other normative and legal acts on regulation of investment activities in the Russian Federation;
the achievement of economic, scientific, technical, environmental and social impacts of the considered investment;
to the enterprise return on invested capital;
effective management of funds for the implementation of non-profit investment projects;
now use state support in order to improve the efficiency of investments;
attracting grants and concessional loans from international and foreign organizations and banks.
In developing the investment policy should take into account:
state of the market of products manufactured by the enterprise, the volume of its implementation, the quality and price of these products;
the financial and economic situation of the company;
technical level of the enterprise, the presence of his construction in progress and uninstalled equipment;
combination of equity and debt resources of the enterprise;
possibility of equipment leasing company;
financial conditions for investment in the capital market;
benefits received by the investor from the state;
commercial and fiscal efficiency of investment activities carried out with the participation of the company;
conditions of insurance and guarantees against non-commercial risks. [6]
The provisions of the developed investment policies recommended to take into account when deciding on the development of feasibility studies for investment projects, the use of various sources of financing, participation in investment projects in cooperation with other companies, organizing the work of other departments of the enterprise.
Investment projects are evaluated in different ways, but the two issues are typical of any analysis: what is the level of net investment income and provide some amount of additional net income of the investment will bring.
In the long term, be based on the life cycle of the property or the product, both concepts will bring the same results, but in the short term may be large differences due to the fact that when a new property is acquired or developed new products, the flow of funds is usually higher than their admission.
Attractiveness of investment proposals need to make the decision on whether to implement it and to attract investors. It is also necessary to select the most effective ways of development of both small businesses and large multi-purpose complexes.
When evaluating an investment project should consider the following points:
assess the degree of well-being of the investor;
determination of the probability of an adverse outcome or the degree of investment risk (non-receipt of expected income, loss of resources expended);
comparative assessment of alternative uses of money and material resources;
use the minimum number of evaluation criteria, unambiguous and easily understandable layman.
In determining the criteria should take into account the intended purpose of investment and technology policy of the company during the period of operation of the facility.
Investment analysis has to convince the decision-makers about the feasibility of capital investments that following conditions are met:
selected the best of the existing alternative projects;
project is aimed at maximizing the value of the enterprise and, accordingly, shareholders;
identified the main risks of the project, an assessment of their impact on the project and there is a strategy for managing and controlling these risks;
determined the amount of resources needed for investment, the start of production and operation of the project;
financial resources for the implementation of the project involved the most favorable conditions for the given situation.
Analysis of the effectiveness of the project is based on the simple (static) methods and techniques of discounting.
Simple methods are based on the assumption of equal importance of revenue and expenditure of the project, obtained at different intervals. The main static methods are:
simple calculation of the rate of profit (net profit on the project for the reporting period to the total capital cost).
calculation of the payback period (number of years for which the resulting net income + depreciation project will cover the capital costs incurred).
Static methods can be instrumental rough estimate of the project. However, for an investor, income and expenditure relating to different periods of time, are unequal in value, ie, capital has a time value. Therefore, to carry out a rigorous analysis of the investment project to use discounting techniques, ie reduction of income \ project costs related to various time intervals to a common denominator through the use of a particular factor - a discount that reflects the time value of capital.
Quite often, the company is faced with a situation where there are a number of alternative (mutually exclusive) investment projects. Naturally, there is a need to compare these projects and selecting the most desirable ones for any criteria.
3. Ownership and sources of investment. Leasing. Foreign investment. Repair of fixed assets and its sources
All sources of investments are classified on their own (internal) and external.
By their own sources of investment include:
1. their own funds, which are formed as a result of depreciation on operating fixed assets, deductions from income for the needs of investment, the amounts paid by insurance companies and agencies in the form of compensation for damage caused by natural and other disasters, and the like;
2. other types of assets (fixed assets, land, industrial property in the form of patents, software, trademarks, etc.);
3. funds raised through the issuance and sale of shares in the enterprise;
4. funds allocated by the parent holding and joint stock companies, industrial and financial groups on an irrevocable basis;
5. charitable and other similar contributions.
The external sources of investment include:
1. allocations from the federal, state and local budgets, foundations of business support provided at no charge;
2. foreign investment is provided in the form of financial or other tangible and intangible in the authorized capital of the joint venture, as well as in the form of direct investments (in cash) of international organizations and financial institutions, states, businesses, and organizations of various forms of property and individuals;
3. various forms of debt, including loans from the state and the foundations of business support on a return basis (including concessional) loans from banks and other institutional investors (investment funds and companies, insurance companies, pension funds), and other enterprises, promissory notes and other means.
In the current market conditions as the odds of ownership is very common leasing. Leasing - a form of credit and financial relations, which consists in a long lease industrial, transport and other enterprises of machinery and equipment, or in companies that produce them, or at the specially created leasing company. In addition to these leasing transaction parties are also involved insurance companies, commercial and investment banks, are able to mobilize the necessary funds to finance operations.
Leasing market is characterized by a variety of forms of leasing models leasing contracts and legal rules governing the leasing operations.
When you select types of leasing originate primarily from the signs of their classification, which is characterized by: relation to rented property, the type of financing leasing operations, the type of leased property; composition of the leasing transaction, the type of leased property, the degree of recovery of leased property; market where held leasing operations.
In relation to the rented property (or volume of service) lease is divided into:
Net (net leasing), when all the costs of property maintenance assumes the lessee. In this case, the lessee takes the lessor net or net payments. The majority of services in the domestic leasing market equipment are clean.
Full, or as it is also called "wet" leasing (wet leasing), when the lessor shall bear all the costs of property maintenance. Its use is generally equipment manufacturers themselves. At a cost of leasing a complete one of the most expensive, as the lessor increased maintenance costs, support of qualified personnel, repair and supply of necessary raw materials and components, etc.
Partial (partial set of services), when imposed on the lessor's only a few functions to service the property.
By type of financing lease is divided into:
Urgent when there is a one-time rental property.
Renewable (revolving), in which after the first term of the lease agreement is extended for the next period. In this case, the objects of leasing over time, depending on the wear and at the request of the lessee are changed to more sophisticated designs. Lessee shall bear all the cost of replacing equipment. The number of leased assets and the timing of their use in renewable leases are not specified in advance by the parties.
Depending on the composition of participants (subjects) of the transaction, the following types of leasing:
Direct lease in which the owner of the property (supplier) on their own leases to lease (two-way deal). In fact, this deal can not be called a classic leasing deal, since it does not participate leasing company.
Indirect leasing, when the transfer of the property is leased through an intermediary. This type of transaction is similar to the classic leasing operation, since it involves the supplier, the lessor and the lessee, each of which acts independently.
Separate leases (leases involving multiple parties) - leveraged leasing. This type of leasing is common as a form of financing of complex, large-scale facilities.
One of the forms of direct leasing is leaseback (sale and leaseback arrangement). Leaseback is a system of interrelated agreements under which the firm - the owner of the land, buildings, structures or equipment is selling this property financial institution (bank, insurance company, investment fund, the company specifically focused on leasing transactions) with simultaneous registration of the agreement on long-term lease of its former property on lease.
By type of assets are distinguished:
Leasing of movable property (equipment, machinery, vehicles, ships, planes, etc.), including new and second hand.
Leasing of real estate (buildings).
According to the degree of return of property leasing is divided into:
Leasing with full payback (or close to full) when during the term of the lease agreement is full or close to full amortization of property and, accordingly, the payment of the cost of the lessor of the property.
Leasing of part-time payback, in which during the term of a lease agreement is a partial amortization of property and pays only a part of it.
According to the features of repayment (amortization of property conditions) allocate financial and operational leasing.
Financial (capital, straight) leasing - financial, capital leases - is a relationship of partners, providing for the term of the agreement between the payment of lease payments covering the full cost of equipment depreciation or most of, the additional costs and profits of the lessor.
Operational (service) lease - service, operating leases - is a rental relationship in which the lessor's costs associated with the acquisition and maintenance of the leased items are not covered by rental payments for one leasing contract. It is usually for 2-5 years. When operational leasing risk of damage or loss of the object lies mainly on the lessor.
Depending on the sector of the market, where leasing operations are carried out, are distinguished:
Domestic leasing, when all participants in the transaction from the same country.
External (international) leasing transactions relate to him, in which at least one of the parties belong to different countries.
To make effective use of fixed assets and keep them in working order requires periodic maintenance.
Repair of fixed capital (fixed assets) - this is a partial recovery (reduced wear of objects) of fixed capital (fixed assets) to keep them in working order. [7]
Produced timely repair provides the rhythm of the enterprise, reduces downtime and increases the service life of fixed assets.
The volume and nature of the repairs are two types of repairs - current and capital. Are different from them and sources of financing: current repairs made due to production costs, and capital - through specially created for the purpose of a sinking fund.
Current repairs planned in the cost of maintenance and operation of equipment, and general factory obschetsehovyh costs, being an independent article estimates these costs. In the case of large deviations from the fact of spending estimates superior organization allows enterprises to reserve funds to cover the costs of maintenance.
The company can produce repair of both in-house and by outside organizations-contractors.
Major repairs of machinery and equipment repair is considered, under which a disassembly of the unit, the replacement or repair of worn parts and components, and which is produced at a frequency of more than one year.
Repair of buildings and structures implies a change of worn components and parts, replacing them with more fuel efficient, advanced, improving the operational capabilities of the repaired object. Major repairs carried out in accordance with the annual plan (with quarterly breakdown) made up in terms of money (at a cost) in real terms, - per object. The source of financing for major repairs of fixed assets is a sinking fund for major repairs.
4. Financial investment. Securities as the object of financial investment. Portfolio management
Financial investments - is diverted funds intended to bring the company revenue over time.
Financial investments include: contributions to the charter capital of other companies (including subsidiaries) in securities (stocks, bonds) of other companies, interest-bearing bonds of state and local loans, deposit accounts of banks, savings certificates, loans granted to other organizations, investment property under contract on joint activity. Documents confirming the committed investments are received shares, certificates, bonds, certificates of deposits on the amounts produced, contracts for the provision of loans. Investments are not documented, should be considered separately.
Financial investments are classified according to various criteria: for connection with a registered capital, ownership, date on which they are made, etc.
Depending on the connection with capital investments differentiate to form the share capital and debt.
For investments in order to form the share capital include stocks, investments in authorized capitals of other organizations and investment certificates evidencing ownership interest in the investment fund, and give the right to receive income from the securities comprising the fund.
For debt securities include bonds, mortgages, deposits and savings certificates.
According to ownership distinguished public and private securities.
Depending on the period for which the investments are made, they are divided into long-term (investments for more than 1 year) and short term (investments for up to 1 year)
All the many definitions of securities can be broken down into groups.
The first group include determining who say that security - this is a document authorizing certain property rights (including the right to receive income).
The second group includes definitions, that indicate that security is a capital. And one can distinguish a group of definitions, saying that the securities are fictitious capital.
Securities of the following functions:
reallocate funds (capital) between the sectors of the economy, territories and countries, groups and strata of the population, population and economic spheres, the public and the state, etc.;
provides certain financial rights to its owners as well as rights to equity. For example, the right to participate in the management of the relevant information, priority in certain situations, etc.;
provides a return on capital and (or) the return of capital itself, and others;
inform investors about the economic situation in the country and gives them a benchmark for the investment;
are the link between the state, political and social institutions on the one hand and a set of economic relations with the other (any political event has an impact on stock prices, and they affect the economy as a whole);
Issue of securities - the most important source of raising funds for young companies raise additional capital for existing businesses, as well as increasing the state and local budgets;
the introduction of various types of securities in the financial and cash flow, allows no increase in the money supply to increase the mobility of financial resources by focusing them on the most important areas of production, circulation;
Giving an overall estimate of the value of securities in the economy, the following important points. First, the security advocates flexible tool investing surplus funds of legal entities and individuals. Second, the placement of securities - an effective way of mobilizing resources for the development of production and to meet other needs of society. Thirdly, the securities are actively involved in service trade and circulation of money. Fourth, on the stock market, especially the stock exchanges, courses consist of securities, these courses - the barometer of any changes in the economic and political life of a country
Among the types of securities are the following.
Action - equity security fixes the rights of the owner (shareholder) of the receipt of the profits of the company in the form of dividends, to participate in the management of the corporation, and a portion of the assets remaining after liquidation.
Bond - equity security fixes the right of the holder to receive from the issuer of a bond provided by it in term of its nominal value and fixed interest of the value of this or any other property equivalent.
Bill - this is made up by the statutory form of an unconditional written financial obligation debt issued by one party (the drawer) to another party (note holder) and paid stamp duty.
Securities portfolio - brought together a variety of investment finance values that serve a tool for a particular investor's investment objectives. Forming a portfolio, an investor comes from its "portfolio considerations". "Portfolio considerations" - a desire of the owner to have their funds in such form and in such a position that they were safe, liquid and highly profitable.
Principles of investment portfolio are safety and profitability of investments, their steady growth, high liquidity. Under the security means invulnerability investment from market turmoil investment capital and income stability. The liquidity of investment property - it is their ability to quickly and without loss in value to turn into cash.
None of the investment property does not have all the properties listed above. Therefore, a compromise is inevitable. If the security is reliable, then the yield will be low, since those who offer reliability, will offer a higher price. The main objective in the formation of the portfolio is to achieve the optimal mix between risk and return for the investor. In other words, the corresponding set of investment tools designed to reduce the risk of loss to the investor to a minimum and at the same time to increase his income to the maximum.
Under the management of a portfolio refers to the aggregate of the application of various types of securities of certain methods and technological capabilities that allow you to:
preserve the original invested capital;
achieve the maximum level of income;
investment portfolio to provide direction
In other words, the process of management is aimed at maintaining the core of the investment portfolio and the quality of the properties that would meet the interests of its holder. Therefore, a correction of the current structure of the portfolio based on the monitoring of factors that may cause a change in the components of the portfolio.
The set of techniques applied to the portfolio and the technical possibilities is a control method that can be characterized as active and passive.
The first and one of the most costly, time-consuming element of management is monitoring, which is a continuous in-depth analysis of the stock market, its trends, sectors of the stock market, the financial and economic performance of the company issuing the securities, investment quality of the securities.
The ultimate goal of monitoring is to select securities that have investment properties corresponding to this type of portfolio.
Monitoring - is the basis of both active and passive control methods.
Active management model involves careful monitoring and immediate purchase of tools that meet the investment objectives of the portfolio, as well as rapid changes in the composition of equity instruments included in the portfolio.
Monitoring provides a basis for predicting the amount of possible income from investment funds and intensification of operations with securities.
Passive management is the creation of a well diversified portfolio with a predetermined level of risk, designed for the long term. Such an approach is possible with sufficient efficiency of the market saturated with good quality securities. The duration of the portfolio involves the process stability in the stock market. In terms of inflation, and hence the existence of mostly short-term securities market, as well as the volatile stock market trends passive management is ineffective.
Passive management is effective only in respect of a portfolio consisting of low-risk securities. The securities must be long-term in order to exist in the portfolio unchanged for a long time. This will enable the main advantage of passive management - low overhead. [8]
5. The role of financial services in the mobilization of financial resources and their effective use for investment
The basic component of the economy in market economic conditions are entities that act as economic agents. They are to carry out economic activities, received the products, income and savings using certain types of resources: material, labor, financial, as well as cash.
Among the above-mentioned economic categories is the most difficult category of "Financial Resources". On the essence of this category, the conventional view among academic economists hitherto not. However, many economists believe that the "financial resources" - is the money available to businesses.
However, the funds - is an independent economic category. In their concept of enterprise funds are invested in accounts in banks, at the box office, etc. They accounted for active accounts and accounting companies are recognized in the assets of the balance sheet.
Same financial resources - are the sources of funds of enterprises directed to the formation of their assets. These sources are of own, borrowed and borrowed. They are reflected in the relevant sections of the balance sheet liabilities.
Accordingly, the financial resources of enterprises - it's own, borrowed and borrowed money capital, which is used by businesses to generate their assets and implement operational and financial activities in order to obtain the gains and profits.
Formation of financial resources is made in the process of establishing businesses and realizing their financial relationships with the implementation of economic and financial activity.
When you create an enterprise sources of funding depend on the form of ownership, on the basis of which the company is created. Thus, with the creation of state enterprises financial resources come from the budget funds higher authorities, due to other similar businesses in their reorganization, etc. When you create a collective enterprises, they are formed by the unit (equity) of the contributions of founders, voluntary contributions of businesses and individuals, and etc. All of these contributions (funds) are authorized (initial) capital and accumulated in the share capital of JV.
In the process of further financial resources of enterprises are supplemented by further create their own sources of borrowed and borrowed funds. In this case, the separately formed their own financial resources (equity) include: reserve capital, additional capital invested, other additional capital, retained earnings, and targeted funding, etc.
The performance of each company depends on the full and timely mobilization of financial resources and using them correctly to ensure normal production process and expanding production facilities. In this context, the importance of each enterprise has the correct organization of financial work
The financial operation is a system of economic measures to determine the financial resources in the amounts necessary to ensure the implementation of plans for economic and social development of enterprises, the control of their targeted and efficient use.
The main objectives of financial activity are:
mobilization of financial resources to the extent necessary to ensure the normal production process and the expansion of productive assets in the amount set by the plans,
finding ways to increase profits and improve the profitability of production,
timely fulfillment of obligations to the various levels of financial and credit system of the budget on introduction of taxes and payments to the centralized budget funds - to pay the established payments to banks - to repay the loan and pay interest for them,
timely fulfillment of obligations to pay suppliers on inventory, to employees - to pay for their labor,
control over safety, the use of an asset and the acceleration of their turnover,
control of rational and targeted use of financial resources.
Financial activity consists of:
financial planning and forecasting,
a financial operation,
analysis and control of the financial activities of enterprises.
Financial planning, being one of the most important functions of business management involves drawing up financial plans (including credit and cash), and other financial and economic calculations to determine the costs and sources of coverage on various areas of the company.
Purpose of financial planning and forecasting is to determine the needs of enterprises in financial resources in the amounts necessary to implement the plan for economic and social development, as well as finding the reserves increase yield and improve profitability.
Financial planning (work) in enterprises, in practice, is expressed as the amount of proceeds from the sale of products, from the provision of services on the side, and the final results of the company in the distribution of income received through the appropriate channels, to establish the need for current assets, capital investment, capital repairs and the sources of their coverage, in compiling the financial plan (the balance of income and expenses). In addition to the financial work include: estimating the content of child-care facilities, housing and communal services, develop-ment and to bring to the production units and the various services of the enterprise cost limits, norms and values of the flow of materials, design and implementation of various activities to increase cash income and savings, as well as to improve production efficiency.
Prompt financial work consists of a set of measures to mobilize the financial resources necessary for the smooth implementation of the process of production and sales, accounts and timely fulfillment of financial obligations to the budget, centralized funds, suppliers, employees, businesses, etc. Specifically, the current financial performance is reflected in the timeliness of registration of products sold and charging you for it with buyers, charging overdue accounts receivable, receipt of funds by way of compensation for lost property, bank loans, as well as in the transfer of payments to the budget, insurance agencies, in repayment of the bank loans and interest on them, in making payments to suppliers, to obtain funds to pay for labor and other business expenses, etc.
Financial control of enterprises is reflected in the verification of the financial, credit and cash plans, the use of funds, the company's solvency, etc. It is carried out by checking the timeliness and accuracy of financial and credit operations, analysis of monthly, quarterly, annual reports and balance sheets.
Financial control of enterprises during the year is intended to check the timeliness and completeness of revenue means the correctness of their expenditure under the plan and financial obligations, to reveal violations, identify the potential for increasing financial resources.
In the investment management activities in one way or another involved such division of the enterprise, such as: financial, contracts, marketing, accounting, production and engineering, construction, supply and sales services. To date, a necessary condition for the successful implementation of investment projects is the integration of all participants in the governance process. It is important to create opportunities for a single management structure investments in the existing organizational structure of the enterprise. [6]
Financial Services Company - is the organizational structure entrusted with the operation of development proposals for the formation of the financial policy of the company, its implementation in the financial, cash and other plans, monitoring their performance and their cash flows, their timely correction (based on the current situation), making reporting of financial results. The purpose of the financial services company providing the most effective formation and use of financial resources of the enterprise opganizatsii and control of these processes.
Objectives of financial service companies:
development of the financial strategy of the enterprise, organizations on the most effective use of their own, borrowed funds;
Composing and implementation of financial credit and cash plans;
assistance to the director, the organization in managing cash flow to ensure profitable growth, improve profitability and meet the production and social needs of employees;
financial control over the efficient use of production assets, for adjusting the size of the working capital to bankable standards;
organization of payment for finished goods (works, services), and constant monitoring of the implementation of plans for sales and profits, tracking of internal and external factors affecting the financial condition of the company, and the development of proposals to change the current financial performance;
fulfillment of financial obligations to the financial tax authorities, banks, suppliers, partners, and the parent organization, the payment of wages and other obligations of the financial plan, reporting on the implementation of the enterprise to develop a financial strategy and related financial plans. [9]
Conclusion
Fixed assets (PF) companies - a set of tangible assets (means of production), which transfer their value during the manufacturing process, in part to made production.
By the nature of participation in the process of reproduction OF allocate production and non-RP. Depending on the purpose and function of isolated buildings, transmission facilities, machinery and equipment, vehicles, tools, industrial equipment, farm implements, draft animals, the capital cost of land improvements, and other formatting.
Depreciation - by shifting part of the cost of PF on manufactured product or a service.
The initial cost of PF is defined as the sum of the value of the purchased equipment, transportation costs, installation costs. The residual value of - the value of the retirement of the balance sheet. Net book value of - the cost for depreciation. Full replacement cost of the building is the amount of funds required for its complete restoration in the original form (old design), with the current prices. It may be overstated by experts.
Reproduction of fixed assets - it is a continuous process of updating through the acquisition of new technologies, the modernization and renovation.
Reproduction of fixed assets at the expense of investment. Investment (capital expenditure) - a set of costs of material, labor and financial resources devoted to the expanded reproduction of capital assets. Investments are classified in relation to the application object, the nature of the use and the time factor.
Attracting investment in the company for the investment process - an important factor in the reproduction of capital.
For efficient investment of funds necessary to evaluate and make the correct choice of the investment project. Quite often, the company is faced with a situation where there are a number of alternative investment projects. There is a need to compare these projects and selecting the most attractive of them by any criteria.
Financial investments - is diverted funds intended to bring the company revenue over time. One of the types of investments in securities - a document authorizing certain property rights (including the right to receive income).
Securities portfolio - brought together a variety of investment finance values that serve a tool for a particular investor's investment objectives.
For the mobilization of financial resources and their effective use for investment meets financial service companies. Financial Services Company - is the organizational structure entrusted with the operation of development proposals for the formation of the financial policy of the company, its implementation in the financial, cash and other plans, monitoring their performance and their cash flows, their timely correction (based on the current situation), making reporting of financial results.
Management of fixed capital is the most important area of public management. On its effectiveness depends largely on the value of the losses, distribution costs and the amount of income received by the organization. Therefore, managers need to carefully examine the nature of capital, as well as ways of its reproduction by investing additional financial resources.
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