1. What is net assets?

Net assets is an accounting term that refers to the balance of a company's total assets minus its total liabilities. The total owner's equity reflected in accounting statements. Generally speaking, it is the balance of the registered capital invested plus the company’s net operating profit. If it is a loss-making enterprise, it is the balance after subtracting operating losses from the registered capital.

Total assets refer to all assets owned or controlled by an enterprise. Including current assets, long-term investments, fixed assets, intangible assets, deferred assets and other long-term assets. is the total assets on the company's balance sheet.

(1) Current assets refer to the total assets that an enterprise can realize or consume within one year or more of its production cycle. Including cash and various deposits, short-term investments, receivables and prepayments, inventories, etc.

(2) Fixed assets refer to the total amount of funds occupied by the net value of fixed assets, liquidation of fixed assets, projects under construction and pending fixed asset losses.

(3) Intangible assets refer to assets that are used by enterprises for a long time and have no physical form. Including patent rights, non-patented technology, trademark rights, copyrights, land use rights,

Second, the difference between net assets and net capital

In the securities field, net capital is a measure of securities Comprehensive regulatory indicators of a company's capital adequacy ratio and asset liquidity. It is part of the net assets of a securities company and has high liquidity and can be quickly realized. Indicates the amount of funds that securities companies can realize at any time to meet payment needs. By monitoring the net capital of securities companies, regulatory authorities can accurately and timely grasp the solvency of securities companies and prevent liquidity risks.

In the field of futures, net capital refers to a comprehensive risk supervision indicator that is based on the net assets of a futures company and adjusts the risk of assets, liabilities and other items based on liquidity. It means that the futures company can be used to respond at any time. The amount of money at risk.

In fact, the net capital indicator is mainly used by financial institutions such as securities companies, investment companies, and guarantee companies. In order to squeeze the bubble and avoid risks.

(1) Different calculation formulas

It is the owner’s equity of net assets, including: paid-in capital, capital reserve, surplus reserve, undistributed profits,

Net assets (total owners' equity) = total assets - total liabilities

Total assets are the total number of assets on the balance sheet, which is equal to total liabilities and total owners' equity.

So total net assets = total assets – total liabilities.

The basic formula for calculating the company’s net capital is: net capital = net assets – financial product investment risk adjustment – ??accounts receivable risk adjustment – ??other current asset risk adjustment – ??long-term asset risk adjustment – ??contingent liability risk Adjustment/-Other adjustment items recognized or approved by the China Securities Regulatory Commission. In the future, net capital will become an important reference for measuring the asset quality of securities companies.

The formula of futures net capital is: net capital = net assets - asset and liability adjustment value - insufficient margin added by customers/- other adjustments.

(2) Net capital is a comprehensive regulatory indicator that measures the capital adequacy and liquidity of securities companies. By monitoring the net capital of securities companies, regulatory authorities can accurately and timely grasp the solvency of securities companies and prevent liquidity risks.

Net assets include private enterprises, state-owned enterprises, public institutions, government agencies, and foreign-funded enterprises. Related questions and answers: Calculation method of net assets Net assets = Assets - Liabilities (increases and decreases affected by annual profits and losses) The amount of owner's equity at the end of the enterprise "is not equal to or does not represent" the market value of net assets. Since it is the market value (usually the current market value), of course it "does not equal or represent" the amount of owners' equity at the end of the period (here it is the historical cost). Net assets are owners' equity, which refers to the economic interest enjoyed by the owner in the assets of the enterprise. Its amount is the balance after assets minus liabilities. Owners' equity includes paid-in capital (or share capital), capital reserves, surplus reserves and undistributed profits, etc. The calculation formula is: Net assets = owners' equity (including paid-in capital or equity, capital reserves, surplus reserves and undistributed profits, etc.) = total assets - total liabilities. Net assets are the excess of an enterprise group's assets over its liabilities, that is, the net value of all assets minus all liabilities. Net assets represent the value of a business group's owners (business owners or shareholders) in the business. It includes share capital, reserve fund (surplus reserve fund, capital reserve fund), undistributed profits, etc. Since the net asset value of an enterprise group belongs to shareholders, it is called "shareholders' equity" in accounting terms. It is an important indicator reflecting the operating performance of an enterprise group. Net assets are affected by the owner's original investment, additional investments, subsequent profits and losses incurred by the business group, and amounts withdrawn from rolled-over profits or investments. The basic data of this plan only include tangible assets in order to reflect the size of shareholders' equity and credit risk of the enterprise group. As for intangible assets such as corporate group reputation and patent rights, they are not included in the calculation for the time being. Considering that the comprehensive strength evaluation should reflect the actual sustainable and stable development of the enterprise group, the net assets are calculated based on the average value at the end of three years. That is: net assets = (net assets at the end of this year, net assets at the end of the previous year, net assets at the end of two years ago) ÷ 3 The year in the calculation formula is defined as the turnover. If the entity view of profits is adopted, net assets are equal to shareholders' equity plus claims; if the ownership view of profits is adopted, net assets are equal to shareholders' equity.

The calculation and processing of net assets are some data indicators used by listed companies to examine the company's performance. Under specific circumstances, they can be processed in accordance with the relevant legal provisions of the Company Law. However, the determination of net assets is not necessarily the more the better. It needs to be combined with the company's performance. The determination of net assets must be based on the actual production and operation, otherwise other problems may arise.