Net assets are the excess of assets over liabilities of an enterprise group, that is, the net value of all assets minus all liabilities. Net assets represent the property value of enterprise group owners (enterprise owners or shareholders) in the enterprise. Including share capital, reserve fund (surplus reserve fund, capital reserve fund), undistributed profit, etc. It is an important indicator reflecting the business performance of enterprise groups.
Net assets are affected by the original investment, additional investment, subsequent profits and losses of enterprise groups and the amount extracted from accumulated profits or investments. In order to reflect the shareholders' equity and credit risk of enterprise groups, only tangible assets are included in the basic data of this scheme. As for intangible assets such as goodwill and patent rights of enterprise groups, they will not participate in the calculation for the time being.
Characteristics of net assets:
Net assets are the net assets held by non-governmental non-profit organizations, indicating the capital scale and economic strength of the organization. Net assets mainly come from social donations, membership fee income, government subsidies, organizational balances and other funds that do not need to be repaid; Debt represents the economic responsibility of non-governmental non-profit organizations to creditors. No matter how long the term is, the debt will eventually be paid off.
Net assets cannot be measured separately, which is the result of measuring assets and liabilities according to a certain method; Liabilities can be measured separately in accordance with the prescribed methods when incurred.
Net assets reflect the trust-entrustment relationship between non-governmental non-profit organizations as trustees and resource providers as clients; On the other hand, liabilities reflect the creditor-debtor relationship between non-governmental non-profit organizations as debtors and creditors.