Abstract
Tangible fixed assets are used in production, provision of services, renting and for administrative purposes. Various internal and external information users are interested in this type of assets. With regards to the significance of such assets, it is very important to carry out their detailed analysis. The article recommends a methodology of complex analysis of tangible fixed assets that consists of the following stages: 1) compositional analysis; 2) structural and dynamic analysis; 3) change analysis; 4) technical condition analysis; 5) usage analysis; 6) profitability analysis. Application of this methodology allows one to objectively assess the condition of the tangible fixed assets and make management decisions in order to use them better and improve the enterprise's activity results.
Highlights
Tangible fixed assets are one of the most important financial indicators describing the financial state and activity results of an enterprise
Tangible fixed assets are used in enterprises from all types of economic activities
Tangible fixed assets are very significant for the financial state of an enterprise and its activity results
Summary
Tangible fixed assets are one of the most important financial indicators describing the financial state and activity results of an enterprise. Continuity of the enterprise's activity, perspectives and even a possibility of a bankruptcy depend on tangible fixed assets usage effectiveness. With regards to the significance of tangible fixed assets, it is very important to carry out its analysis. There is a lack of literature on the tangible fixed assets analysis. Many foreign and Lithuanian authors have analysed the issues of tangible fixed assets valuation and accounting in detail. Special emphasis is put on determination of the tangible fixed assets acquisition (production) cost, accounting policy development and application of depreciation methods
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