Net assets = assets-liabilities, affected by annual profit and loss.
The amount of owner's equity at the end of the enterprise "does not equal or represent" the market value of net assets.
Because it is the market value (usually the current market value), of course, it "does not equal or represent" the amount of owner's equity at the end of the enterprise (here is the historical cost).
Net assets, that is, owners' equity, refers to the economic benefits enjoyed by the owners in the assets of the enterprise, and its amount is the balance of assets MINUS liabilities. Owners' equity includes paid-in capital (or share capital), capital reserve, surplus reserve and undistributed profit, etc.
Its calculation formula is: net assets = owner's equity (including paid-in capital or equity, capital reserve, surplus reserve and undistributed profit, etc.). ) = total assets-total liabilities.
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. Because the net asset value of an enterprise group belongs to shareholders, it is called "shareholders' equity" in accounting. It is an important indicator reflecting the business performance of enterprise groups.
-China implements the registered capital system. Therefore, the paid-in capital of the enterprise should be equal to the registered capital of the enterprise after the investor has paid up the capital. The capital invested by the owner in the enterprise can be used for a long time under normal circumstances without repayment. Due to the different organizational forms of enterprises, the accounting methods of owners' capital investment are also different. In addition to the capital invested by the shareholders of a joint stock limited company, other enterprises should set up the subject of "paid-in capital" to calculate the capital actually received by investors.
The invested capital of general enterprises (non-joint-stock companies) is accounted for by the subject of "paid-in capital". In accordance with the provisions of the articles of association, the enterprise shall record the capital invested by investors into the "paid-in capital" account.
The part of the capital invested by an investor that exceeds its share in the registered capital shall be accounted for as capital premium or equity premium in the "capital reserve" account, and shall not be recorded in this account. -Among all the original shareholders of the company, the liabilities of all shareholders who account for 5% (including 5%) of the shares of the host futures company must be less than 50% of the registered capital!