Talismans 

The concept of sources of financing of the organization. Sources of financing for the company's activities. Advantages and disadvantages of various sources of financing for the company's activities

Course work in enterprise economics

"External and internal sources

financing of the company's activities"

St. Petersburg

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

CHAPTER 1. Financial resources of the enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . .4

CHAPTER 2. Classification of funding sources. . . . . . . . . . . . . . . . . . 7

2.1. Internal sources of financing of the enterprise. . . . . . . . . . . . . . . . 8

2.2. External sources of financing of the enterprise. . . . . . . . . . . . . . . . . .12

CHAPTER 3. Management of funding sources. . . . . . . . . . . . . . . . . . .16

3.1. The ratio of external and internal sources

in the capital structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.2. the effect financial leverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

List of used literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Introduction

Company is a separate techno-economic and social complex designed to produce benefits useful to society in order to make a profit. When it is created, as well as in the process of managing it, decisions are made various questions, one of which is the financing of the enterprise, that is, the provision of the necessary financial resources for the costs of its implementation and development. These resources are subjects economic life are obtained from various sources, without which no enterprise can exist and operate. And, therefore, there is nothing surprising in the fact that the issue of possible sources of financing is relevant today for many business entities and worries many entrepreneurs.

The purpose of the work is to study the existing sources of funds, their role in the process of the enterprise and its development.

Prioritization among funding sources, choosing the most optimal sources is a problem for many organizations today. Therefore, this paper will consider the classification of sources of financing the activities of the enterprise, the concept financial resources closely related to these sources, as well as the ratio in the capital structure of own and borrowed funds, which has a significant impact on the financial and economic activities of the enterprise.

Consideration of these aspects will allow to draw conclusions regarding a given topic.

CHAPTER 1. Financial resources of the enterprise

The concept of financial resources is closely related to the concept of sources of financing for the activities of an economic entity. Enterprise financial resources is a set of own funds and receipts of borrowed and borrowed funds intended to fulfill financial obligations, finance current costs and costs associated with the expansion of capital. They are the result of the interaction of receipt, expenditure and distribution of funds, their accumulation and use.

Financial resources play important role in the reproduction process and its regulation, the distribution of funds in the areas of their use, stimulate the development of economic activity and increase its efficiency, allow you to control financial condition business entity.

Sources of financial resources are all cash income and receipts that an enterprise or other economic entity has in a certain period (or date) and which are directed to the implementation cash costs and deductions necessary for the production and social development.

Financial resources formed from various sources enable the enterprise to invest in new production in a timely manner, to ensure, if necessary, the expansion and technical re-equipment of the existing enterprise, to finance Scientific research, developments, their implementation, etc.

The main areas of use of the financial resources of the enterprise in the course of its activities include:

Financing the current needs of the production and trade process to ensure the normal functioning of the production and trading activities of the enterprise through the planned allocation of funds for the main production, production and auxiliary processes, supply, marketing and sales of products;

Financing administrative and organizational measures to maintain a high level of functionality of the enterprise management system through its restructuring, the allocation of new services or the reduction of the managerial staff;

Investing funds in the main production in the form of long-term and short-term investments in order to develop it (complete renovation and modernization production process), creation of new production or reduction of certain unprofitable areas;

Financial investments- investing financial resources for purposes that bring the company a higher income than development own production: purchase valuable papers and other assets in various segments of the financial market, investments in the authorized capital of other enterprises in order to generate income and obtain rights to participate in the management of these enterprises, venture financing, providing loans to other companies;

The formation of reserves, carried out both by the enterprise itself and by specialized insurance companies and state reserve funds at the expense of standard deductions to maintain a continuous circulation of financial resources, protect the enterprise from adverse changes in market conditions.

Financial reserves are of great importance for ensuring uninterrupted financing of the production process. In market conditions, their role is significant. These reserves are able to ensure the continuous circulation of funds in the reproduction process, even in the event of huge losses or the occurrence of unforeseen events. The enterprise creates financial reserves at the expense of its own resources.

Financial support for reproduction costs can be carried out in three forms: self-financing, lending and public funding.

Self-financing is based on the use of the company's own financial resources. In case of insufficiency own funds it can either cut some of its costs or take advantage of funds raised in the financial market through securities transactions.

Lending is a method of financial support for reproduction costs, in which costs are covered by a bank loan provided on the basis of repayment, payment, and urgency.

State financing is made on a non-refundable basis at the expense of budgetary and non-budgetary funds. Through such financing, the state purposefully redistributes financial resources between the production and non-production spheres, sectors of the economy, etc. In practice, all forms of cost financing can be applied simultaneously.

CHAPTER 2. Classification of funding sources

The financial resources of the enterprise are transformed into capital through appropriate sources of funds. Today, their various classifications are known.

Funding sources can be conditionally divided into three groups: used, available, potential. Used sources are a set of such sources of financing the activities of the enterprise, which are already used to form its capital. The range of resources that are potentially real for use are called available. Potential sources are those that can theoretically be used for the functioning of commercial enterprises, in conditions of more advanced financial, credit and legal relations.

One of the possible and most common groupings is the division of sources of funds by time:

Sources of short-term funds;

Advance capital (long-term).

Also in the literature there is a division of funding sources into the following groups:

Own funds of enterprises;

Borrowed funds;

Involved funds;

Budget appropriations.

However, the main division of sources is their division into external and internal. In this version of the classification, own funds and budget allocations are combined into a group of internal (own) sources of financing, and external sources are understood as borrowed and (or) borrowed funds.

The fundamental difference between the sources of own and borrowed funds lies in the legal reason - in the event of the liquidation of the enterprise, its owners have the right to that part of the property of the enterprise that will remain after settlements with third parties.

2.1. Internal sources of financing of the enterprise

The main sources of financing the activities of the enterprise are its own funds. Internal sources include:

Authorized capital;

Funds accumulated by the enterprise in the course of its activities (reserve capital, additional capital, retained earnings);

Other legal and individuals(target financing, charitable contributions, donations, etc.).

Equity capital begins to form at the time of the establishment of the enterprise, when its authorized capital is formed, that is, the totality in monetary terms of contributions (shares, shares at par value) of the founders (participants) to the property of the organization during its creation to ensure activities in the amounts determined by the constituent documents. The formation of the authorized capital is associated with the peculiarities of the organizational and legal forms of enterprises: for partnerships - this is share capital, for joint-stock companies - share capital, for production cooperatives - a share fund, for unitary enterprises- statutory fund. In any case, the authorized capital is the starting capital necessary to start the activity of the enterprise.

The methods of formation of the authorized capital are also determined by the organizational and legal form of the enterprise: by making contributions by the founders or by subscribing for shares, if it is a JSC. A contribution to the authorized capital may be money, securities, other things or property rights having a monetary value. At the time of the transfer of assets in the form of a contribution to the authorized capital, the ownership of them passes to the economic entity, that is, investors lose property rights to these objects. Thus, in the event of the liquidation of the enterprise or the withdrawal of a participant from the company or partnership, he has the right only to compensate for his share within the residual property, but not to return the objects transferred to him in due time in the form of a contribution to the authorized capital.

Since the authorized capital minimally guarantees the rights of creditors of the enterprise, its lower limit is legally limited. For example, for LLCs and CJSCs it cannot be less than 100 times the minimum monthly wage (MMOT), for JSCs and unitary enterprises - less than 1000 times the size of MMOT.

Any adjustments in the size of the authorized capital (additional issue of shares, reduction in the nominal value of shares, making additional contributions, admission of a new participant, joining part of the profit, etc.) is allowed only in cases and in the manner provided for by the current legislation and constituent documents.

In the process of activity, the enterprise invests money in fixed assets, purchases materials, fuel, pays for the labor of employees, as a result of which goods are produced, services are provided, work is performed, which, in turn, are paid for by buyers. After that, the money spent as part of the proceeds from the sale is returned to the enterprise. After reimbursement of expenses, the enterprise receives profit, which goes to the formation of its various funds (reserve fund, accumulation funds, social development and consumption funds) or forms a single enterprise fund - retained earnings.

In a market economy, the amount of profit depends on many factors, the main of which is the ratio of income and expenses. At the same time, the current regulatory documents provide for the possibility of a certain regulation of profits by the management of the enterprise. These regulatory procedures include:

Accelerated depreciation of fixed assets;

Procedure for valuation and amortization of intangible assets;

The procedure for assessing the contributions of participants in the authorized capital;

Choosing a method for estimating inventories;

The procedure for accounting for interest on bank loans used to finance capital investments;

The composition of overhead costs and the way they are distributed;

Profit is the main source of formation of the reserve fund (capital). This fund is designed to compensate for unforeseen losses and possible losses from economic activity, that is, it is insurance in nature. The procedure for the formation of reserve capital is determined by the regulatory documents governing the activities of an enterprise of this type, as well as its statutory documents. For example, for a joint stock company, the value of the reserve capital must be at least 15% of the authorized capital, and the procedure for the formation and use of the reserve fund is determined by the charter of the joint stock company. The specific amounts of annual deductions to this fund are not determined by the charter, but they must be at least 5% of the net profit of the joint-stock company.

Accumulation funds and fund social sphere are created at enterprises at the expense of net profit and are spent on financing investments in fixed assets, replenishment working capital, bonuses to employees, payment of wages to individual employees in excess of the wage fund, provision financial assistance, paying insurance premiums for supplementary health insurance programs, paying for housing, buying apartments for employees, catering, paying for transportation and other purposes.

In addition to funds formed from profits, integral part the company's own capital is additional capital, which, by its financial origin, has different sources of formation:

Share premium, i.e. funds received by the joint-stock company - issuer in the sale of shares in excess of their nominal value;

The amounts of revaluation of non-current assets arising from the increase in the value of property during its revaluation at market value;

The exchange rate difference associated with the formation of the authorized capital, i.e. the difference between the ruble assessment of the debt of the founder (participant) on the contribution to the authorized capital, estimated in the constituent documents in foreign currency, calculated at the exchange rate of the Central Bank of the Russian Federation on the date of receipt of the amount of deposits, and the ruble assessment of this contribution in the constituent documents.

Additional capital funds can be used to increase the authorized capital; to pay off the loss identified based on the results of work for the year; for distribution among the founders. Regulatory documents prohibit the use of additional capital for consumption purposes.

In addition, enterprises can receive funds for the implementation of targeted activities from higher organizations and individuals, as well as from the budget. Budget assistance can be allocated in the form of subventions and subsidies. Subvention- budgetary funds provided to the budget of another level or to an enterprise on a gratuitous and irrevocable basis for the implementation of certain targeted expenses. Subsidy- budgetary funds provided to another budget or enterprise on the basis of shared financing of targeted expenses.

Targeted funding and revenues are spent in accordance with the approved estimates and cannot be used for other purposes. These funds are part of the organization's own capital, which expresses the residual rights of the owner to the property of the enterprise and its income.

2.2. External sources of financing of the enterprise

The enterprise cannot cover its needs only at the expense of its own sources. This is due to the nature of the movement. cash flows, at which the moments of receipt of payments for goods, services and work for the enterprise do not coincide with the maturity of the obligations of the enterprise, unforeseen delays in payments may occur. An additional need for sources of financing may also be due to inflation, when the funds received by the enterprise in the form of sales proceeds depreciate and cannot meet the increased need for funds of the enterprise due to the increase in prices for raw materials and materials. In addition, the expansion of the company's activities requires the involvement of additional resources. Thus, borrowed sources of financing appear.

Borrowed capital, depending on the terms of the loan, is divided into long-term (long-term liabilities) and short-term (short-term liabilities). Long-term liabilities, in turn, are divided into bank loans (payable in more than 12 months) and other long-term liabilities.

Short-term liabilities consist of borrowed funds (bank loans and other loans payable within 12 months) and accounts payable of the enterprise to suppliers and contractors, to the budget, for wages, etc.

An important source of financing the activities of the enterprise is a bank loan. Previously, many enterprises (especially in industry and agriculture) could not use loans from commercial banks, since the cost of loans (the level of interest rates) was high. But now they have the opportunity to pursue a more active policy of attracting borrowed funds, since in 2002-2003. interest rates dropped sharply. poured into Russia foreign loans. By offering enterprises lower rates and longer lending terms than Russian commercial banks, foreign banks have made a serious statement on the Russian credit market.

From 2001 to 2004 refinancing rates have almost halved, but it's not just the rates, an important trend is the lengthening of the terms of lending to enterprises, which is predetermined by the long-term stabilization of the political and economic situation in the country, and the improvement in the maturity of the banking system's liabilities.

In accordance with the Civil Code of the Russian Federation, all loans are issued to borrowers subject to the conclusion of a written loan agreement. Lending is carried out in two ways. The essence of the first method is that the issue of granting a loan is decided each time on an individual basis. A loan is issued to meet a certain target need for funds. This method is used when granting loans for specific periods, i.e. urgent loans.

In the second method, loans are provided within the limits set by the bank for the borrower's credit limit - by opening a credit line. An open credit line allows you to pay at the expense of the loan any settlement and monetary documents provided for by the loan agreement concluded between the client and the bank. The credit line is opened mainly for a period of one year, but can be opened for more short period. During the term of the credit line, the client can receive a loan at any time without additional negotiations with the bank and any formalities. It opens to clients with a stable financial position and a good credit reputation. At the request of the client, the credit limit can be reviewed. A credit line can be revolving and non-revolving, as well as targeted and non-targeted.

Enterprises receive loans on the terms of payment, urgency, repayment, intended use, secured (guarantees, pledge of real estate and other assets of the enterprise). The bank checks the loan application for legal creditworthiness (legal status of the borrower, the size of the authorized capital, legal address, etc.) and financial solvency (assessment of the company's ability to repay the loan in a timely manner), after which a decision is made to grant or refuse to grant a loan .

The disadvantages of the credit form of financing are:

The need to pay interest on the loan;

The complexity of the design;

The need for security;

Deterioration of the balance sheet structure as a result of borrowing, which can lead to loss of financial stability, insolvency and, ultimately, bankruptcy of the enterprise.

Funds can be obtained not only by taking loans, but also by issuing bonds and other securities. Bonds is a type of securities issued as debt instruments. Bonds can be short-term (for 1-3 years), medium-term (for 3-7 years), long-term (for 7-30 years). At the end of the circulation period, they are redeemed, that is, the owners are paid their face value. Bonds can be coupon bonds that pay periodic income. Coupon - a tear-off coupon, which indicates the date of payment of interest and its amount. There are also zero-coupon bonds that do not pay periodic income. They are placed at a price below par and are redeemed at par. The difference between the placement price and the face value forms a discount - the owner's income. disadvantage this method financing is the presence of the cost of issuing securities, the need to pay interest on them, the deterioration of the liquidity of the balance sheet.

In addition, the source of financing for the activities of the enterprise is accounts payable, i.e. deferred payment, as a result of which funds are temporarily used in the economic turnover of the debtor enterprise. Accounts payable- this is a debt to the personnel of the enterprise for the period from payroll to its payment, to suppliers and contractors, debt to the budget and extra-budgetary funds, participants (founders) for income payments, etc.

The golden rule of accounts payable management is to extend the maturity of the debt as much as possible without possible financial consequences. In this case, the company uses "foreign" funds as if for free.

The use of accounts payable as a source of financing significantly increases the risk of loss of liquidity, since these are the most urgent obligations of the enterprise.

CHAPTER 3. Managing Funding Sources

The strategy of the financial policy of the enterprise is a key moment in assessing the acceptable, desired or predicted pace of increasing its economic potential.

An enterprise can use three main sources of funds to finance its activities:

Results of own financial and economic activities (reinvestment of profits);

Increase in the authorized capital (additional issue of shares);

Attracting funds from third-party individuals and legal entities (issuing bonds, obtaining bank loans, etc.)

Of course, the first source is a priority - in this case, all earned profits, as well as potential profits, belong to the real owners of the enterprise. In the case of attracting the second and third sources, part of the profit has to be sacrificed. The practice of large Western firms shows that most of them are extremely reluctant to issue additional shares as a permanent part of their financial policy. They prefer to rely on their own capabilities, that is, on the development of the enterprise mainly through the reinvestment of profits. There are several reasons for this:

An additional issue of shares is a very expensive and time-consuming process.

The issue may be accompanied by a decline in the market price of the shares of the issuing company.

As for the ratio between own and attracted sources of funds, it is determined by various factors: national traditions in financing enterprises, industry affiliation, size of the enterprise, etc.

Various combinations of the use of sources of funds are possible. If a company focuses on own resources, then the main share in additional sources of financing will fall on reinvested profits, and the ratio between sources will change towards a decrease in funds attracted from outside. But such a strategy is hardly justified, therefore, if an enterprise has a well-established structure of sources of funds and considers it optimal for itself, it is advisable to maintain it at the same level, that is, with the growth of its own sources, increase the amount of attracted in a certain proportion.

The pace of increasing the economic potential of an enterprise depends on two factors: the return on equity and the profit reinvestment ratio. These factors give a generalized and comprehensive description of the various aspects of the financial and economic activities of the enterprise:

Production (return of resources);

Financial (structure of sources of funds);

Relationship between owners and management personnel (dividend policy);

The position of the enterprise in the market (profitability of products).

Any enterprise that has been steadily functioning for a certain period has well-established values ​​of the selected factors, as well as trends in their change.

3.1. The ratio of external and internal sources

financing in the capital structure

In the theory of financial management, two concepts are distinguished: "financial structure" and "capitalized structure" of the enterprise. The term "financial structure" means a way of financing the activities of the enterprise as a whole, that is, the structure of all sources of funds. The second term refers to a narrower part of funding sources - long-term liabilities ( own sources funds and long-term borrowed capital). Own and borrowed sources of funds differ in a number of ways.

The capital structure has an impact on the results of the financial and economic activities of the enterprise. The ratio between the sources of own and borrowed funds is one of the key analytical indicators that characterize the degree of risk of investing financial resources in a given enterprise, and also determines the prospects for the organization in the future.

The issues of the possibility and expediency of managing the capital structure have long been debated among scientists and practitioners. There are two main approaches to this problem:

1) traditional;

2) Modigliani-Miller theory.

Followers of the first approach believe that: a) the price of capital depends on its structure; b) there is an "optimal capital structure". The weighted price of capital depends on the price of its components (own and borrowed funds). Depending on the structure of capital, the price of each of the sources changes, and the rates of change are different. Numerous studies have shown that with an increase in the share of borrowed funds in the total amount of sources of long-term capital, the price of equity capital is constantly increasing at an increasing pace, and the price of borrowed capital, remaining practically unchanged at first, then also begins to increase. Since the price of debt capital is on average lower than the price of equity capital, there is a capital structure called optimal, in which the weighted capital price indicator has minimum value, and, therefore, the price of the enterprise will be maximum.

The founders of the second approach, Modigliani and Miller (1958), argue the opposite - the price of capital does not depend on its structure, that is, it cannot be optimized. In substantiating this approach, they introduce a number of restrictions: the existence of an efficient market; no taxes; the same interest rates for individuals and legal entities; rational economic behavior, etc. Under these conditions, they argue, the price of capital always equalizes.

In practice, all forms of cost financing can be applied simultaneously. The main thing is to achieve the optimal ratio between them for a given period. There is an opinion that the optimal ratio between own and borrowed funds is a ratio of 2:1. In other words, own financial resources should be twice as much as borrowed ones. In this case, the financial position of the enterprise is considered stable.

3.2. The effect of financial leverage

At present, large enterprises usually have a debt-to-equity ratio of 70:30. The larger the share of own funds, the higher the financial independence ratio. With an increase in the share of borrowed capital, the probability of bankruptcy of the organization increases, which forces creditors to increase interest rates for a loan by increasing credit risks.

But at the same time, enterprises with a high share of borrowed funds have certain advantages over enterprises with a high share of equity in assets, since, having the same amount of profit, they have a higher return on equity.

This effect, which arises in connection with the appearance of borrowed funds in the amount of used capital and allows the company to receive additional profit on equity, is called the effect of financial leverage (financial leverage). This effect characterizes the effectiveness of the use of borrowed funds by the enterprise.

In the general case, with the same economic profitability, the profitability of equity capital significantly depends on the structure of financial sources. If the organization has no paid debts, and no interest is paid on them, then growth economic profit leads to a proportional increase in net profit (provided that the amount of tax is directly proportional to the amount of profit).

If the enterprise, with the same total amount of capital (assets), is financed by not only its own, but also borrowed funds, profit before tax is reduced by including interest in costs. Accordingly, the amount of income tax decreases, and the return on equity may increase. As a result, the use of borrowed funds, despite their payment, allows you to increase the profitability of your own funds. In this case, we talk about the effect of financial leverage.

The effect of financial leverage is the ability of debt capital to generate a return on equity investments, or to increase the return on equity through the use of borrowed funds. It is calculated as follows:

E fr \u003d (R e - i) * K s,

where R e - economic profitability, i - interest for using the loan, K c - the ratio of borrowed funds to the amount of own funds, (R e - i) - differential, K c - leverage.

The financial leverage differential is an important information impulse that allows you to determine the level of risk, for example, for granting loans. If the economic profitability is higher than the level of interest on the loan, then the effect of financial leverage is positive. If these indicators are equal, the effect of financial leverage is zero. If the level of interest on a loan exceeds economic profitability, this effect becomes negative, that is, an increase in borrowed funds in the capital structure brings the enterprise closer to bankruptcy. Therefore, the larger the differential, the lower the risk and vice versa.

The shoulder of the financial lever carries fundamental information. Large leverage means significant risk.

The effect of financial leverage is higher, the lower the cost of borrowed funds (interest rate on loans), and the higher the income tax rate.

Thus, the effect of financial leverage allows you to determine the possibility of attracting borrowed funds to increase the profitability of your own and the associated financial risk.

Conclusion

Any enterprise needs sources of financing for its activities. There are various sources of funds. Internal sources include: authorized capital, funds accumulated by the enterprise, targeted financing, etc. External sources are bank loans, issuance of bonds and other securities, and accounts payable. It should be noted that internal and external funding sources are interrelated but not interchangeable.

Today, an important task of the financial policy of the enterprise is to optimize the structure of liabilities, that is, the rationalization of funding sources. The larger the share of own funds, the higher the coefficient of financial independence of the enterprise, but business entities with a high share of borrowed funds also have certain advantages. Borrowed funds for the enterprise, although they are a paid source of financing. Practice shows that their use is more effective than their own.

Each enterprise independently determines the structure and methods of financing its activities, it depends on the industry characteristics of the enterprise, its size, the duration of the production cycle for manufacturing products, etc. The main thing is to correctly prioritize among sources of financing, calculate the capabilities of the enterprise and predict possible consequences.

List of used literature

1. Big Economic Dictionary / ed. Azrilyana A.N. - M.: Institute of New Economics, 1999.

2. Ermasova N.B. Financial Management: Exam Handbook. – M.: Yurayt-Izdat, 2006.

3. Karelin V.S. Corporate Finance: Textbook. - M .: Publishing and Trade Corporation "Dashkov and K", 2006.

4. Kovalev V.V. The financial analysis: Capital Management. Choice of investments. Reporting analysis. - M.: Finance and statistics, 1998.

5. Romanenko I.V. Enterprise Finance: Lecture Notes. - St. Petersburg: Publishing house Mikhailov V.A., 2000.

6. Selezneva N.N., Ionova A.F. The financial analysis. Financial management: Textbook for universities. – M.: UNITI-DANA, 2006.

7. Modern Economics: Textbook / Ed. prof. Mamedova O.Yu. - Rostov-on-Don: Phoenix Publishing House, 1995.

8. Chuev I.N., Chechevitsyna L.N. Enterprise Economics: Textbook. - M .: Publishing and Trade Corporation "Dashkov and K", 2006.

9. Economics and management in SCS. Scientific notes of the Faculty of Economics. Issue 7. - St. Petersburg: Publishing House of St. Petersburg State Unitary Enterprise, 2002.

10. Economics of the enterprise (company): Textbook / Ed. prof. Volkova O.I. and Assoc. Devyatkina O.V. – M.: INFRA-M, 2004.

11. http://www.profigroup.by

Appendix

Table "Key differences

between types of sources of funds"

Scheme "Sources and movement

financial resources of the enterprise"


Financial resources- money in cash and non-cash form.

Venture funding- investing in projects with a high level of risk and at the same time high profitability.

Cm.: Appendix, scheme "Sources and movement of financial resources of the enterprise".

Share capital- the totality of contributions of participants in a general partnership or limited partnership made to the partnership for the implementation of its economic activities.

Unit trust- a set of share contributions of members of a production cooperative for joint business activities, as well as those acquired and created in the course of activities.

Authorized fund- a set of fixed and working capital allocated by the state or municipal bodies by a state and municipal enterprise.

Refinancing rate- the amount of payment made by bank customers when repaying old debts on loans by replacing them with new loans.

Cm. Appendix, table "Key differences between types of sources of funds".

Economic profitability of the enterprise is determined by the ratio of economic profit (that is, profit before interest on the use of borrowed and borrowed funds and taxes) to the assets of the organization.

Introduction

Financial resources (financial sources) perform leading role for any enterprise. They are used in the process of production, investment and financial activities, at the expense of funding sources, in due time, a company is created. Financial sources are constantly in motion and in monetary form remain only in the form of cash balances on settlement accounts in banks and in the company's cash desk.

The relevance of this work lies in the fact that financial resources are necessary both for the formation and subsequent functioning of the company, its innovative activities, etc. A competent assessment and control of sources of financing allows the enterprise to pursue the most profitable and favorable policy for its growth. Reflection of sources of financing in accounting allows you to get the most full information on the state of the financial resources of the enterprise.

The aim of the work is to study the sources of financing the activities of the organization as one of the objects accounting.

Tasks: to consider the concept of sources of financing of the organization's activities, types of sources, reflection of sources of activity in accounting.

Research methods are: research, analysis, induction, deduction.

Sources of financing the activities of the organization as an object of accounting

finance accounting

The concept and types of sources of financing of the organization's activities

Sources of financing (resources) are functioning channels for obtaining funds and economic entities that can provide these funds (Appendix 1). The basis of financing the activities of the enterprise is to develop financing schemes based on individual characteristics and impact external factors.

The following sources of funding are distinguished:

1) Internal sources of the enterprise - authorized capital (funds from the sale of shares and share contributions of participants or founders), sales proceeds; depreciation charges, net profit of the enterprise; reserves accumulated by the enterprise, other contributions from legal entities and individuals (targeted financing, donations, charitable contributions). For example, the rational use of profits and depreciation can allow you to expand business activities.

2) Attracted funds (foreign investments) - When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and its share of ownership in it. The higher the proportion foreign investment, the less control remains with the owner of the enterprise. It can also be an additional issue of securities, through which there is an increase in the share capital of the company, as well as attracting additional share capital through additional contributions to the authorized capital;

3) Borrowed funds (credit, leasing, bills) - leasing is a special complex form entrepreneurial activity that allows the lessee to effectively update fixed assets, a loan is a loan in cash or commodity form provided by the lender to the borrower on a repayment basis, most often with the payment of interest by the borrower for using the loan. This form of funding is the most common.

4) Mixed (complex, combined) financing.

There is another option for dividing funding sources into:

1. Internal sources - profit remaining at the disposal of the company, which is distributed by the decision of the management bodies; depreciation deductions, which are a monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.

2. Short-term financial resources are funds used to pay wages, pay for raw materials and materials, and various current expenses. Forms of implementation of funding sources in this case can be as follows:

· bank overdraft - the amount received in the bank in excess of the current account balance. The overdraft is payable at the request of the bank. Usually this is the cheapest form of a loan, the amount of interest on it does not exceed 1-2% of the bank's discount rate,

· bill of exchange (draft) - a monetary document, according to which the buyer undertakes to pay the seller a certain amount within the time period established by the parties. The bank takes into account bills of exchange, providing their owners with a loan for a period until they are redeemed. As a payment for the issued loan on a bill of exchange, the bank charges interest, the value of which changes daily. Bills of exchange are most often used in foreign trade payments,

· An acceptance credit is applied when a bank accepts for payment a promissory note drawn in the name of its clients. In this case, the bank pays the creditor the value of the bill, minus the discount, and upon expiration of its maturity, collects this amount from the debtor,

· commercial loan - the purchase of goods or services with a deferred payment for one - two months, and sometimes more. The use of a commercial loan is determined by a specific type of economic activity. Appeal to it depends on the speed of the sale of goods and the possibility of deferred payments of the enterprise itself,

3. Medium-term financial resources (from 2 to 5 years) are used to pay for machinery, equipment and research work. The purchase by an enterprise on credit of machinery, equipment and Vehicle occurs on fixed terms secured by purchased goods with regular repayment of the loan in installments. The group of medium-term financial resources includes the lease of machinery and equipment. Payment for the use of leased funds is carried out by regular installments, while the ownership never passes to the debtor.

4. Long-term financial resources (over 5 years) are used to purchase land, real estate and long-term investments. It can be:

long-term (mortgage) loans - the provision of funds by insurance companies or pension funds secured by land plots, buildings for a period of 25 years,

· Bonds - debt obligations with a fixed percentage and maturity. A significant portion of the bonds have a face value,

issuance of shares - receipt of funds through the sale various kinds shares in the form of closed or open subscription.

Sources of financing the activities of the organization as an object of accounting


Introduction


Financial resources (financial sources) play a major role for any enterprise. They are used in the process of production, investment and financial activities, at the expense of funding sources, in due time, a company is created. Financial sources are constantly in motion and in the form of money remain only in the form of cash balances on settlement accounts in banks and in the company's cash desk.

The relevance of this work lies in the fact that financial resources are necessary both for the formation and subsequent functioning of the company, its innovative activities, etc. A competent assessment and control of sources of financing allows the enterprise to pursue the most profitable and favorable policy for its growth. The reflection of sources of financing in accounting allows you to get the most complete information about the state of the financial resources of the enterprise.

The aim of the work is to study the sources of financing the activities of the organization as one of the objects of accounting.

Tasks: to consider the concept of sources of financing of the organization's activities, types of sources, reflection of sources of activity in accounting.

Research methods are: research, analysis, induction, deduction.


1.Sources of financing the activities of the organization as an object of accounting

finance accounting

1.1The concept and types of sources of financing of the organization's activities


Sources of financing (resources) are functioning channels for obtaining funds and economic entities that can provide these funds (Appendix 1). The basis for financing the activities of the enterprise is to develop financing schemes based on individual characteristics and the impact of external factors.

The following sources of funding are distinguished:

)Internal sources of the enterprise - authorized capital (funds from the sale of shares and share contributions of participants or founders), sales proceeds; depreciation charges, net profit of the enterprise; reserves accumulated by the enterprise, other contributions from legal entities and individuals (targeted financing, donations, charitable contributions). For example, the rational use of profits and depreciation can allow expanding economic activity.

2)Attracted funds (foreign investments) - When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and its share of ownership in it. The higher the share of foreign investment, the less control remains with the owner of the enterprise. It can also be an additional issue of securities, through which there is an increase in the share capital of the company, as well as attracting additional share capital through additional contributions to the authorized capital;

3) Borrowed funds (loan<#"justify">There is another option for dividing funding sources into:

.Internal sources - profit remaining at the disposal of the company, which is distributed by the decision of the management bodies; depreciation deductions, which are a monetary expression of the cost of depreciation of fixed assets and intangible assets and are an internal source of financing for both simple and expanded reproduction.

2.Short-term financial assets are funds used to pay wages, pay for raw materials and materials, and various current expenses. Forms of implementation of funding sources in this case can be as follows:

· bank overdraft - the amount received in the bank in excess of the current account balance. The overdraft is payable at the request of the bank. Usually this is the cheapest form of a loan, the amount of interest on it does not exceed 1-2% of the bank's discount rate,

·bill of exchange<#"justify">3.Medium-term financial resources (from 2 to 5 years) are used to pay for machinery, equipment and research and development. The purchase by an enterprise on credit of machinery, equipment and vehicles occurs on fixed terms against the security of the purchased goods with regular repayment of the loan in installments. The group of medium-term financial resources includes the lease of machinery and equipment. Payment for the use of leased funds is carried out by regular installments, while the ownership never passes to the debtor.

4.Long-term financial resources (over 5 years) are used to purchase land, real estate and long-term investments. It can be:

· long-term (mortgage) loans - the provision by insurance companies or pension funds of funds secured by land plots, buildings for a period of 25 years,

· Bonds are debt instruments with a fixed interest rate and maturity. A significant portion of the bonds have a face value,

· issue of shares - receipt of funds by selling various types of shares in the form of a closed or open subscription.

1.2. Sources of financing as an object of accounting

The property of the organization is formed by attracting funds from various sources. In accounting, the sources of financing are:

)Authorized capital (fund) - a set in monetary terms of the contributions of the founders (owners) to property (the cost of fixed assets, intangible assets, working capital and cash) when creating an enterprise to ensure its activities in the amounts determined by the constituent documents. Accounting is kept on account 80 "Authorized capital".

2)Additional capital - is formed due to the increase in the value of non-current assets: when revaluing fixed assets upwards; upon receipt of various assets from legal entities and individuals (non-refundable), as well as at the expense of share premium. Accounting is kept on account 82 "Additional capital".

)Reserve capital - is created at the expense of annual deductions from net profit, intended to cover losses, as well as for the company's bonds and redemption of the company's shares in case of other means. The amount of reserve capital and the amount of mandatory contributions to it are determined by the charter or constituent documents. Accounting is kept on account 82 "Reserve capital".

)Retained earnings - net profit or part of it, not distributed in the form of dividends between shareholders (founders), but aimed at accumulating the property of a trade organization or replenishing its working capital in the form of free sums of money, which can be used for a new turnover at any time. Accounting is kept on account 99 “Profit and losses”.

)Target financing is funds received from other enterprises, state and municipal bodies and intended for the implementation of targeted activities. A feature of this type of financing may be that capital investments can be made within the framework of joint activities. Trust funds - the list and procedure for the formation of trust funds (funds special purpose) are regulated by the constituent documents and the adopted accounting policy. Special funds include: an accumulation fund, a consumption fund, a social sphere fund and other similar funds formed by an organization from profits remaining at the disposal of the organization after taxation. Accounting is kept on account 86 "Target financing" and depends on the types of financing.

)Bank loans - the amount of received short-term and long-term bank loans (outstanding). Accounting is kept on account 66.67 "Settlements on short-term loans and borrowings", "Settlements on long-term loans and borrowings"

)Borrowed funds - the amount of shares of the labor collective issued and sold by the enterprise, shares of the enterprise and bonds, short-term and long-term loans, etc. Accounting is kept on account 66.67 “Settlements on short-term loans and loans”, “Settlements on long-term loans and loans”, and also on account 58 "Financial investments".

)Settlements and other accounts payable - amounts owed to suppliers for goods and services on promissory notes issued, advances received, wages, insurance, budget, etc. Accounting is kept on account 60 “Settlements with suppliers and contractors”, 62 “Settlements with buyers and customers”, 68 “Calculations on taxes and fees”, etc.

As an example, you can write out the entries on Account 86 "Target financing", which is designed to summarize information on the movement of funds intended for the implementation of special-purpose activities, funds received from other organizations and individuals, budget funds, etc.

Special purpose funds received as sources of financing for certain activities are reflected in the credit of account 86 "Target financing" in correspondence with account 76 "Settlements with various debtors and creditors".

The use of target financing is reflected in the debit of account 86 "Target financing" in correspondence with accounts: 20 "Main production" or 26 "General business expenses" - when target financing funds are directed to the maintenance of a non-profit organization; 83 "Additional capital" - when using funds of targeted financing received in the form of investment funds; 98 "Deferred income" - when sending commercial organization budgetary funds to finance expenses, etc.

Analytical accounting on account 86 "Target financing" is carried out according to the purpose of target funds and in the context of their sources of income.

Targeted financing is reflected not when funds are received, but when the legally formalized will of the body is expressed, which undertakes to allocate these funds:

Debit 76 "Settlements with various debtors and creditors / Credit 86 "Target financing"

And only after the money is received, the accountant will make a posting:

Debit 51 "Settlement accounts" / Credit 76 "Settlements with different debtors and creditors"

Thus, the debit of account 51 "Settlement accounts" concentrates the money received, and the credit of account 86 "Target financing" indicates that this money can be spent only in accordance with the specified purpose.

2. Practical part

1) Net income relates to the following funding source:

a) internal sources

b) borrowed sources

c) involved sources

Answer: but)

) The receipt of funds from citizens is an example of:

a) domestic financing

b) external funding

c) own financing

Answer: but)

) As borrowed funds can be:

a) funding

b) foreign investment

c) loans

Answer: in)

) No additional costs associated with raising capital from external sources, and maintaining control over the activities of the enterprise by the owner is an advantage ...

a) raised funds

b) internal sources

c) foreign investment

Answer: b)

5) What type of attracted funds allows you to minimize taxation?

a) credit

b) a bill

c) leasing

Answer: in)

) Can an employee of the enterprise donate funds to form the capital of the company?

c) only if there is permission from the head

Answer: but)

) The formation of the authorized capital is carried out on the account ...

Answer: in)

8) The state can finance with:

a) loans

c) subsidies

d) loans

Answer: b)

9) Funds from the sale of shares and share contributions of participants form:

a) additional capital

b) own shares

c) authorized capital

Answer: in)

) Account 58 "Financial investments" are reflected:

a) loans

b) own funds

c) invested funds

Answer: but)

) Funding sources are:

a) permanent

b) mixed

c) variables

Answer: b)

12) The property of the organization is formed from:

a) one source

b) multiple sources

c) all at the same time

Answer: b)

) What form of borrowing is most common:

a) credit

c) leasing

Answer: but)

2.2 Task

A task. The enterprise must build a capital construction facility using funds provided by the investor.

Solution: Operations on the movement of capital construction financing sources are accounted for by investors and customers on cash accounts (51 "Settlement accounts", 52 "Currency accounts", 55 "Special accounts in banks"), settlements (76 "Settlements with different debtors and creditors ") and target sources (86 "Targeted funding").

At the same time, the objects put into operation in accordance with the established procedure: are credited by the developer to the balance sheet as part of their own property; are transferred by the customer to investors who provided him with funds to finance these objects, or to persons specified in the contract.

The customer keeps records of funds received to finance capital construction until its completion on account 76 "Settlements with various debtors and creditors". Accounting for capital construction operations is carried out in the following order:

Dr. c. 51, 52, 55 76 - sources of financing received from the investor;

Dr. c. 08 Set of accounts 51, 52, 60, 76, etc. - construction costs are reflected;

Dr. c. 19 Set of sc. 60, 76, etc. - reflected VAT on invoices of suppliers and contractors;

Dr. c. 76 Set of sc. 08 - expenses are written off upon completion of construction at the expense of financing sources;

Dr. c. 76 Set of sc. 19 - VAT was written off upon completion of construction at the expense of financing sources;

Dr. c. 76 Set of sc. 90 - the revenue (income) of the customer is reflected as the difference between the estimated amount (limit) of funds for its maintenance, the actual maintenance costs and the amount of savings according to the estimate, if this is provided for by the agreement (contract) for capital construction with the investor;

Dr. c. 90 Set of sc. 68 - reflected VAT on the amount of revenue;

Dr. c. 90 Set of sc. 99 - reflected profit from investment activities

Dr. c. 76 Set of sc. 51 - returned the amount of savings to the investor.


Conclusion


The financial results of the enterprise depend on the availability and efficiency of the use of financial resources that ensure the life of the organization.

In a market economy, sources of financial resources have great value: an enterprise in practice cannot do without attracting borrowed or own funds. Sources of financing in all forms in normal economic conditions contribute to increasing the efficiency of production, necessary for the implementation of expanded production. The variety of channels for attracting financial resources creates the opportunity to use them in different situations.

Therefore, the control and organization of financial sources is the paramount principle of the activity of any business entity. In a market economy, these issues are of great importance. Each enterprise should carry out the timely formation and competent organization of financial resources.


List of used literature


1) Federal Law No. 402-FZ of December 6, 2011 (as amended on November 4, 2014) "On Accounting" (December 06, 2011)

2) Tests and control tasks in management accounting and controlling<#"justify">Applications


Attachment 1

Tutoring

Need help learning a topic?

Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.

Classification of financial resources by sources of formation

By place of origin the financial resources of the enterprise are classified into:

  • domestic financing;
  • external funding.

Domestic funding involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income.

At external financing can be used funds received by the organization from outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

Grouping the financial resources of organizations by sources of their formation shown in the figure below.

The financial resources of the organization, unlike material and labor, are fungible and susceptible to inflation and devaluation.

Today topical issue for domestic industrial enterprises there will be a state of fixed production assets, the depreciation of which has reached 70%. At ϶ᴛᴏm we are talking not only about physical, but also about obsolescence. There is a need to re-equip Russian enterprises with new high-tech equipment. When ϶ᴛᴏm, it is important to choose the source of financing for the specified re-equipment.

The following sources of funding are distinguished:

  • Internal sources of the enterprise(net income, depreciation, sale or lease of unused assets)
  • Involved funds(foreign investment)
  • Borrowed funds(credit, leasing, bills)
  • mixed(complex, combined) financing.

Internal sources of financing of the enterprise

We note the fact that in modern conditions enterprises independently distribute the profits remaining at their disposal. Rational use of profits involves taking into account factors such as the implementation of plans further development enterprises, as well as respecting the interests of owners, investors and employees.

As a rule, the more profit is directed to the expansion of economic activity, the less the need for additional financing. The amount of retained earnings depends on the profitability business transactions, as well as from the dividend policy adopted at the enterprise.

TO advantages of domestic financing enterprises should be attributed no additional costs associated with raising capital from external sources and maintaining control over the activities of the enterprise by the owner.

disadvantage this type of financing of the enterprise will be it is not always possible to apply it in practice. The depreciation fund lost its value because the depreciation rates for most types of equipment used in Russian industrial enterprises are underestimated and can no longer serve as a full-fledged source of financing, and the allowed accelerated depreciation methods cannot be used for existing equipment.

Second internal source of funding- the profit of the enterprise remaining after taxes. As practice shows, most enterprises do not have enough of their own internal resources to upgrade fixed assets.

Involved funds

When choosing a foreign investor as a source of financing, an enterprise should take into account the fact that the investor is interested in high profits, the company itself and its share of ownership in it. The higher the share of foreign investment, the less control remains with the owner of the enterprise.

Remains debt financing, at which there is a choice between leasing and credit. Most often, in practice, the effectiveness of leasing is determined by comparing it with a bank loan, which is not entirely correct, because for each specific transaction one has to take into account ϲʙᴏ and specific conditions.

Credit as a source of financing for an enterprise

Credit- a loan in cash or commodity form, provided by the lender to the borrower on a repayment basis, most often with the payment of interest by the borrower for using the loan. By the way, this form of financing will be the most common.

Loan benefits:

  • the credit form of financing is more independent in the use of the funds received without any special conditions;
  • most often, a loan is offered by a bank serving a particular enterprise, so that the process of obtaining a loan becomes very operational.

The disadvantages of a loan include the following:

  • the loan term in rare cases exceeds 3 years, which will be unbearable for enterprises aimed at long-term profit;
  • to obtain a loan, an enterprise requires the provision of collateral, often equivalent to the amount of the loan itself;
  • in some cases, banks offer to open a current account as one of the conditions for bank lending, which is not always beneficial for the enterprise;
  • With this form of financing, an enterprise can use the standard depreciation scheme for purchased equipment, which obliges to pay property tax during the entire period of use.

Leasing as a source of enterprise financing

Leasing is a special complex form of entrepreneurial activity that allows one side - the lessee - to effectively update fixed assets, and the other - the lessor - to expand the boundaries of activities on mutually beneficial terms for both parties.

Advantages of leasing:

  • Leasing involves 100% lending and does not require immediate start of payments. When using a conventional loan to purchase property, the company must pay about 15% of the cost at its own expense.
  • Leasing allows an enterprise that does not have significant financial resources to start implementing a large project.

It is much easier for an enterprise to obtain a leasing contract than a loan, because The equipment itself serves as the collateral for the transaction..

A leasing agreement is more flexible than a loan. A loan always involves a limited size and repayment period. When leasing, an enterprise can count on the receipt of their income and work out with the lessor a convenient financing scheme for it. Repayment can be made from funds received from the sale of products, which are produced on equipment leased. The company has additional opportunities to expand production capacity: payments under a leasing agreement are distributed over the entire term of the agreement and, thus, additional funds are released for investment in other types of assets.

Leasing does not increase debt in the company's balance sheet and does not affect the ratio of own and borrowed funds, i.e. does not reduce the company's ability to obtain additional loans. It is very important that the equipment purchased under a leasing agreement may not be listed on the balance sheet of the lessee during the entire term of the agreement, which means that it does not increase assets, which exempts the enterprise from paying taxes on acquired fixed assets.

The Tax Code of the Russian Federation retains the right to choose the balance sheet of property received (transferred) under financial lease on the balance sheet of the lessor or lessee. original cost property that is the subject of leasing, the amount of expenses of the lessor for its acquisition is recognized. Excluding the above, since 2002, regardless of the chosen method of accounting for the property that is the subject of a leasing agreement (on the balance sheet of the lessor or lessee), lease payments reduce the taxable base (Article 264 of the Tax Code of the Russian Federation) Article 269 of the Tax Code of the Russian Federation introduced a limit on the amount of interest on loans that the lessor may attribute to the reduction of the taxable base, but in other cases, the lessor may attribute the amount of interest on the loan to the reduction of the taxable base.

Leasing payments paid by the company wholly ᴏᴛʜᴏϲᴙ is spent on production costs. If the property received under leasing is taken into account on the lessee's balance sheet, then the enterprise can receive benefits associated with the possibility of accelerated depreciation of the leased asset. Depreciation charges for such property may be charged on the basis of its value and norms approved in the prescribed manner, increased by a factor not exceeding 3.

Leasing companies unlike banks no deposit needed if this property or equipment is liquid in the secondary market.

Leasing allows an enterprise, on completely legal grounds, to minimize taxation, and also to attribute all expenses for equipment maintenance to the lessor.

The composition of the economic resources used by the organization is different. Special meaning for the successful operation of the organization has a certain stock of funding sources.

Funding sources are the financial resources used to purchase assets and carry out transactions.

The sources of financing include short-term and long-term debt, preferred and ordinary shares (liability balance sheet).

An analysis of the structure of the balance sheet liability characterizing the sources of funds shows that their main types are: own and borrowed funds.

The sources of own funds are:

Authorized capital (funds from the sale of shares and share contributions of participants - the total nominal value of all types of shares, i.e., the authorized capital reflects the amount of all obligations of the company to investors, since in the event of its liquidation or withdrawal of a participant from its shareholders, the investor has the right only to compensation of their share within the residual property of the enterprise); the formation of the authorized capital may be accompanied by the formation of an additional source of funds - share premium, if during the initial issue the shares are sold at a price above par;

Reserves accumulated by the enterprise, including retained earnings;

Mobilization of internal assets (in the process of capital construction, the firm may form specific sources of financing, for example, the sale of a part of current assets);

Other contributions from legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of borrowed funds are:

Bank loans;

Postponement of tax payment;

Borrowed funds from other companies (loans of legal entities against debt obligations - promissory notes);

Funds from the sale of bonds (registered and bearer) and other securities to other companies;

Accounts payable (commercial loan);

Leasing (financial transaction for the use of property through rent).

The fundamental difference between sources of own and borrowed funds lies in the legal content - when a company is liquidated, its owners have the right to that part of the company's property that will remain after settlements with third parties.

The essence of the difference between own and borrowed funds is that interest payments are deductible before taxes, that is, they are included in expenses, and dividends on the owners' shares are deducted from profits after interest and taxes.

Depending on the duration of existence, the assets of the organization, as well as sources of funds, are divided into short-term (current) and long-term. Short-term sources include sources of financing attracted for a period of less than 1 year. Long-term sources are equity capital and borrowed capital attracted for a period of more than 1 year.

Own and borrowed capital is characterized by positive and negative features that affect the activities of the enterprise.

Equity capital is characterized by the following positive features:

1. Ease of attraction, since decisions related to the increase in equity capital (especially through internal sources of its formation) are made by the owners and managers of the organization without the need to obtain the consent of other business entities.

2. A higher ability to generate profit in all areas of activity, since when using it, the payment of loan interest in all its forms is not required.

3. Ensuring the financial sustainability of the development of the organization, its solvency in the long term, and, accordingly, reducing the risk of bankruptcy.

At the same time, negative features are also inherent in equity:

1. The limited volume of attraction, therefore, the possibility of a significant expansion of the operating and investment activities of the organization during periods of favorable market conditions.

2. High cost compared to alternative borrowed sources of capital formation.

3. Unused opportunity to increase the return on equity ratio by attracting borrowed financial resources, since without such attraction it is impossible to ensure the excess of the ratio financial profitability activities of the organization over the economic.

Thus, an organization that uses only its own capital has the highest financial stability (the autonomy coefficient is equal to one), but limits the pace of its development (because it cannot ensure the formation of the necessary additional volume of assets during periods of favorable market conditions) and does not use financial opportunities increase in return on invested capital.

Borrowed capital is characterized by the following positive features:

1. Sufficiently wide opportunities for attracting, especially with a high credit rating of the organization, the presence of collateral or a guarantee of the recipient.

2. Ensuring the growth of the financial potential of the organization, if necessary, a significant expansion of its assets and an increase in the growth rate of the volume of its economic activity.

3. Lower cost in comparison with equity due to the effect of a "tax shield" (withdrawal of the cost of its maintenance from the taxable base when paying income tax).

4. The ability to generate an increase in financial profitability (return on equity ratio).

At the same time, the use of borrowed capital has the following negative features:

1. The use of this capital generates the most dangerous financial risks in the activities of the organization - the risk of reducing financial stability and loss of solvency. The level of these risks increases in proportion to the growth in the share of borrowed capital used.

2. Assets formed at the expense of borrowed capital generate a lower (ceteris paribus) rate of return, which is reduced by the amount of loan interest paid in all its forms (interest on a bank loan; leasing rate; coupon interest on bonds; bill interest on commodity credit, etc.).

3. High dependence of the cost of borrowed capital on fluctuations in the financial market.

In some cases, for example, with a decrease in the average loan interest rate in the market, the use of a previously received loan (especially on a long-term basis) becomes unprofitable for the organization due to the availability of cheaper alternative sources of credit resources.

4. The complexity of the recruitment procedure (especially in large sizes), since the provision of credit resources depends on the decision of other business entities (lenders), in some cases it requires appropriate third-party guarantees or collateral (at the same time, guarantees from insurance companies, banks and other organizations are provided, as a rule, on a paid basis).

Thus, an organization using borrowed capital has a higher financial potential for its development (due to the formation of an additional volume of assets) and the possibility of increasing the financial profitability of its activities, however, it generates financial risk and the threat of bankruptcy to a greater extent (increasing as the share of borrowed funds increases). funds in the total amount of capital used).

Any organization finances its activities, including investment, from various sources. As a payment for the use of financial resources advanced to the activities of the organization, it pays interest, dividends, remuneration, etc., i.e. incurs some reasonable costs to maintain its economic potential. As a result, each source of funds has its own value as the sum of the costs of providing this source.

The total amount of funds that must be paid for the use of a certain amount of financial resources, expressed as a percentage of this volume, is called the cost of capital (Cost of Capital, CC), i.e. The cost of capital is the ratio of the amount of funds that must be paid for the use of financial resources from a particular source to the total amount of funds from this source, expressed as a percentage. IN domestic literature you can also find another name for the concept under consideration: the price of capital, the value of capital, the cost of capital, etc.

The indicator "cost of capital" has a different economic meaning for individual business entities:

a) for investors and creditors, the level of the cost of capital characterizes the rate of return required by them on the capital provided for use;

b) for business entities that form capital for the purpose of production or investment use, the level of its value characterizes the specific costs of attracting and servicing the financial resources used, i.e. the price they pay for the use of capital.

With this indicator, the organization evaluates how much should be paid for raising a unit of capital (both from a specific source of funds, and in the whole organization for all sources).

The concept of the cost of capital is one of the basic ones in the theory of the organization's capital. The cost of capital characterizes the level of return on invested capital required to ensure the high market value of the organization. The maximization of the market value of the organization is achieved to a large extent by minimizing the cost of the sources used. The cost of capital indicator is used in the performance evaluation process investment projects and investment portfolio of the organization as a whole.

The indicator of the cost of capital is used in the process of evaluating the effectiveness of investment projects and the investment portfolio of the organization as a whole. The adoption of many financial decisions (the formation of a policy for financing current assets, the decision to use leasing, planning the operating profit of an organization, etc.) is based on an analysis of the cost of capital.

In the process of assessing the cost of capital, the cost of individual elements of equity and debt capital is first assessed, then the weighted average cost of capital is determined.

Determining the cost of capital of an organization is carried out in several stages:

1) the identification of the main components that are sources of formation of the capital of the organization is carried out;

2) the price of each source is calculated separately;

3) the weighted average price of capital is determined based on the share of each component in the total amount of invested capital;

4) measures are being developed to optimize the capital structure and form its target structure.

The cost of capital depends on its source (owner) and is determined by the capital market, i.e. supply and demand (if demand exceeds supply, then the price is set at more high level). The cost of capital also depends on the amount of capital raised.

The main factors under the influence of which the cost of capital of an organization is formed are:

1) general state financial environment, including financial markets;

2) commodity market conditions;

3) the average rate of loan interest prevailing in the market;

4) the availability of various sources of funding for organizations;

5) the profitability of the organization's operating activities;

6) the level of operating leverage;

7) the level of concentration of own capital;

8) the ratio of the volume of operating and investment activities;

9) the degree of risk of the operations being carried out;

10) industry specifics of the organization's activities, including the duration of the operating cycle

The level of cost of capital differs significantly for its individual elements (components). An element of capital in the process of assessing its value is understood as each of its varieties according to individual sources of formation (attraction). Such elements are the capital attracted by: 1) reinvestment of the profit received by the organization (retained earnings); 2) issue of preferred shares; 3) issue of ordinary shares; 4) obtaining a bank loan; 4) issue of bonds; 5) financial leasing, etc.

For a comparable assessment, the value of each element of capital is expressed as an annual interest rate. The level of value of each element of capital is not a constant value and fluctuates significantly over time under the influence of various factors.