The net assets of an enterprise refer to its total assets minus its liabilities. Accounting net assets are also called owners' equity. Refers to the residual rights and interests enjoyed by the owner in the assets of the enterprise, the amount of which is the balance of assets MINUS liabilities, including paid-in capital, capital reserve, surplus reserve and undistributed profit.
The company's net assets specifically include the following points:
1, paid-in capital, that is, the original investment of investors;
2. Capital reserve, that is, capital premiums and donations received by enterprises;
3. Surplus reserves refer to statutory surplus reserves and arbitrary surplus reserves extracted from after-tax profits;
4. retained earnings after profit distribution, that is, undistributed profits.
Total assets refer to all assets owned or controlled by an economic entity that can bring economic benefits. The net assets belong to the enterprise, which can be freely controlled and has the existing owner's rights and interests.
I hope the above questions can help you. If you have other legal questions, please consult a professional lawyer.
Legal basis: Article 9 of the Regulations on Financial Accounting Reports of Enterprises The balance sheet is a statement that reflects the financial position of an enterprise on a specific date. The balance sheet shall be presented by assets, liabilities and owners' equity (or shareholders' equity, the same below). Among them, the definition and listing of assets, liabilities and owners' equity shall meet the following requirements:
(1) Assets refer to resources formed by past transactions and events, which are owned or controlled by enterprises and are expected to bring economic benefits to enterprises. On the balance sheet, assets should be listed according to their liquidity classification, including current assets, long-term investments, fixed assets, intangible assets and other assets. If the assets of banks, insurance companies and non-bank financial institutions are special, they should be classified and itemized according to their nature.
(2) Liabilities refer to the current obligations formed by past transactions and events, and the fulfillment of this obligation is expected to lead to the outflow of economic benefits from the enterprise. On the balance sheet, liabilities should be listed according to their liquidity classification, including current liabilities and long-term liabilities. If the liabilities of banks, insurance companies and non-bank financial institutions are special, they should be classified and itemized according to their nature.
(3) Owner's equity refers to the economic benefits enjoyed by the owner in the assets of the enterprise, and the amount is the balance of assets minus liabilities. On the balance sheet, the owner's equity shall be itemized according to paid-in capital (or share capital), capital reserve, surplus reserve and undistributed profit. Article 95 of the Company Law stipulates that when a limited liability company is changed into a joint stock limited company, the converted total paid-in share capital shall not be higher than the net assets of the company. When a limited liability company is changed into a joint stock limited company, the public offering of shares for the purpose of increasing capital shall be handled according to law.