The management of any enterprise, carrying out operational activities, should clearly represent the volume of assets, the source of formation of which is equity. It is necessary to know this in order to have an idea of the capabilities and production capacity, to plan the scope of upcoming work. 
The total value of property, working capital and financial assets, reduced by the amount of liabilities, is called net assets. About how to produce net asset calculation on balance, the article will be discussed.
Value determination
How to quickly calculate net assets? This value is calculated as the difference between the assets of the company and the obligations assumed. The calculation procedure is established by law and is applied by organizations with various forms of ownership: joint-stock companies, LLC, state and municipal unitary enterprises, business partnerships and production cooperatives.
Calculation of net assets on the balance sheet: formula
To calculate the value, all the company's assets are involved in the calculation, with the exception of indicators such as the accounts receivable of the founders for shares in the authorized capital (UK).
All liabilities are taken into account in the calculation, except for deferred income received by the company as a result of the gratuitous transfer of property or state support. Such income is poured into equity and excluded in the calculation of the fifth section of balance (p. 1530).
The calculation of net assets on the balance sheet is carried out according to the formula: Ah = (p1600 - 3at) - (p1400 + p1500 - Dbp), where:
- p1600 - the total line of the asset balance;
- 3at - debts of co-founders on contributions to the authorized capital (it must be remembered that their size is not separately allocated in the balance sheet, but is included in the receivables, therefore, data from analytical accounting are also necessary);
- str1400 - the total amount of the fourth section of the balance sheet;
- str1500 - the total amount of the fifth section of the balance sheet;
- Dbp - Future income received in connection with state support or the reception of property free of charge; this value should also be determined according to analytical accounting, since it is not allocated in the balance sheet, but is included in the total amount on line 1530.
What is considered normal?
Since the calculation of net assets on the balance sheet reveals the size of the desired value in cost equivalent, it is impossible to establish any standard value. We can only say with confidence that this indicator should be positive. And not just positive, but exceed the authorized capital.
Then we can talk about the viability of production and argue that in the process, the company did not squander the funds of the authorized capital, but significantly increased them. The amount of net assets below the size of the authorized capital is acceptable only in the first year of the newly organized enterprise. If in subsequent financial periods net assets do not exceed the size of the authorized capital, then, on the basis of legislative requirements, it will be necessary to reduce the authorized capital to the level of net assets. If the Criminal Code has a minimum value, and it cannot be reduced, then the question arises of the bankruptcy of the company.
A negative value is a sign of company instability, indicating that the dependence on creditors is enormous, and the organization does not have its own funds.
Net assets as an indicator of investment attractiveness
The higher the value, the more confidence in the company from investors, creditors and shareholders.The value of this indicator indicates the stability or well-being of the organization. 
Based on this information, the potential shareholder or founder evaluates the state of affairs in the company and makes the necessary decisions.
Calculation of net assets on the balance sheet as a technique used in valuation activities
A similar method is often used in business valuation. The appraiser draws up a conclusion based on the use of the company's financial reports, previously adjusted by their own calculations of the estimated values of the market price of the property and liabilities at the current moment.
Differences in the value of net assets in the reporting and liquidation balance sheets
The size of assets calculated on the liquidation balance sheet is an indicator of the share of value distributed between the co-founders of the organization in case of its liquidation. But to calculate this value using different balances means to get indicators that are very different from each other.
If the calculation of net assets on the balance sheet for LLC is carried out according to the report at the end of the period, then, as a rule, their value will be underestimated, since the calculations are carried out at discount prices and property costs, which are always lower than market prices. This applies not only to fixed assets, but also to working capital, since the generally accepted LIFO method, which underestimates their value, is often used to estimate reserves.
When calculated according to liquidation balance the value of assets is determined based on current market prices. The calculation of net assets on the balance sheet for a closed joint-stock company (or an enterprise of another form of ownership) made according to liquidation estimates is closer to reality.
That is why, when liquidating a company, drawing up an appropriate balance sheet is necessary. They compose it at the beginning of the liquidation period, determining the size of the assets, which are likely to be distributed among the co-founders, according to the shares entered in the Criminal Code. During the liquidation, this calculation loses relevance.
