ECONOMIC ESSENCE, VALUATION AND CLASSIFICATION OF NONCURRENT ASSETS AS A BASIS FOR THEIR ACCOUNTING AND EFFICIENT USE OF ENTREPRENEURIAL POTENTIAL

Abstract

The article examines the economic essence of non-current assets. It is found that the concept of non-current assets is derived from the category of «capital», and therefore a retrospective of the interpretation of capital by various scientific schools is highlighted. The approaches to the identification of the concepts of «capital» and «non-current assets» are elaborated. The historical path of identification of the economic essence of the concept  of «non-current assets» in economic theory and accounting is reflected. The characteristic features of non-current assets are summarized, in particular, the following: it is probable that an economic benefit associated with the use of the asset will flow to the entity in the future; the useful life is more than one calendar year or an operating cycle; they may have tangible and intangible forms; they are not subject to sale within one year; their  value is transferred to the product in parts; they are illiquid economic assets; they are non-monetary assets (except for long-term receivables). The existing types of valuations of non-current assets are presented: cost, revalued amount, fair value, residual value, carrying amount, value determined by the entity, depreciable value, residual value, net realizable value. The process of valuation of fixed assets in accounting and reporting as a key component of non-current assets is reflected. The composition of noncurrent assets according to NAS 1 “General requirements for financial statements” is investigated. The accounting issues related to non-current assets are identified by the authors. It is determined that most attention is paid by scientists to the issues of depreciation of non-current assets and their essence in general. A generalized classification of non-current assets is proposed with the following features: by functional criterion; by the nature of ownership; by the possibility of movement; by cost; by method of receipt; by technical condition; by the nature of participation in production; by reflection in the balance sheet (statement of financial position); by participation in the production  process; by purpose; by sources of financing.