If pure gross internal investments are equal to depreciation. Gross and net investments. The difference between gross investments from clean

3. Gross I. clean investments

Gross investments are sent to maintain and increase the fixed capital (fixed assets) and stocks. They consolidate from depreciation, which is the investment resources necessary to reimburse the wear of fixed assets, their repair, restoration to the previous level preceding production use and from net investments that is, capital investments in order to increase fixed assets for the construction of buildings and structures. , production and installation of new, additional equipment, updates and improvement of existing production facilities.

At the micro level, investments play very important role. They are necessary to ensure the normal functioning of the enterprise, stable financial state and increasing the profit of the economic entity.

A significant part of investments is sent to the social and cultural sphere, in the industry of science, culture, education, health, physical culture and sports, computer science, protection ambient, for the construction of new objects of these industries, the improvement of the techniques and technologies used in them, the implementation of innovations. There are investments invested in humans and human capital. This investment is primarily in education and health care, the creation of funds that ensure the development and spiritual improvement of personality, strengthening the health of people, the extension of life.

The effectiveness of the use of investments largely depends on their structure.

Under the investment structure, their composition is understood by types, in the direction of use, on sources of financing, etc.

Profitability is the most important structure-forming criterion, which determines the priority of investment.

Non-state sources of investment are directed to profitable industries With rapid capital turnover. At the same time, the sector of the economy with a small profitability of the invested funds remains not fully invested.

Excessive investment leads to inflation, insufficient - to deflation.

These extremes economic Policy regulated using an effective tax strategy, public spending, credit and financial and budgetary events implemented by the Government.

In the reproduction system, whatever its social form, investments belong to the most important role in renewal and increase production resources, and therefore, in providing certain economic growth rates.

In the presentation of public reproduction as a production system, exchange and consumption of investments relate to the first phase of production and constitute the material basis of its development.

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Key difference: Under gross investments are understood by the total costs of buying fixed assets for a certain period of time excluding depreciation. On the other hand, net investments take into account depreciation and are calculated by subtracting depreciation from gross investments.

Investments belong to the amount invested in the acquisition financial assets. Investments are made in order to get a good target income for a certain period of time. The target income may be in any of the forms, such as an increase in the cost of assets or securities. This may also relate to regular income derived from securities or assets. Exist different kinds Investments such as autonomous, side, financial, real, planned, unplanned, gross and clean.

Gross investments belong to the amount invested in the purchase or construction of new capital goods. Pure investments are also associated with gross investments. It is mostly gross investment less the depreciation of existing capital. This depreciation is associated with some investments that need to be done to replace outdated or worn assets, such as factories and equipment.

Or we can say that, pure investments \u003d gross investments - depreciation

If gross investments exceed the depreciation for any period of time, then this directly indicates that net investments are positive, which also means an increase in fixed capital.

In the same way, if the gross investment is less depreciation, then in this case, net investments tend to be negative, and the stock margin decreases.

To understand the difference, you can see this example: the plant begins a year with 20 cars. He buys 5 cars. 10 cars are worn. Now gross investments belong to the purchase of new machines, which is 5, whereas at the end of the year the total number of work machines \u003d 20 + 5-4 \u003d 21. This leads to the actual growth of 21-20 \u003d 1 machine. What reflects net investments.

Thus, gross investments are a total amount spent on goods for the production of other goods and services, while pure investments are an increase production reserves.

Comparison of clean and gross investment:

	Clean investments	Gross investment
Definition	It is calculated by subtracting capital depreciation from gross investment.	total amountspent on the purchase of new assets
	Clean investment \u003d gross investment - depreciation	Gross Investments \u003d Common Purchase or Construction of New Capital Goods
value	It helps to understand how much money is spent on capital objects, taking into account such losses such as maintenance, wear, etc. Thus, it helps expand operations and improve efficiency. Neglecting shock absorption, you can face special situations associated with outdated or worn out devices.	Helps in determining total costs of production
Includes	Changes in capital	All new investments - Purchase of machines, equipment and tools by enterprises All design Changes in stocks
Indicator	As a rule, it is considered the best indicator than gross investments	Not considered the best indicator compared to net investments.

Gross investments are attachments that are sent to maintain and increase fixed capital and stocks. They include depreciation and net investments.

Depreciation is the investment resources necessary in order to reimburse the depreciation of fixed assets, restore them to the entry level. Cash investments, the purpose of which is to increase fixed assets on the construction of buildings, the production and installation of new equipment, improving the current production resources.

At the minority investments are very important. They are needed in order to ensure the normal functioning of the company, a stable financial situation and increase the profit of the chest.

The big percentage of investments is on the costs of the social and cultural, scientific and educational sector, health, physical education and sports, in the protection of nature, for the construction of new construction facilities For the development of these areas, improve the equipment and technologies that are used in them.

There are investments in a person and its potential. These investments are mostly implemented in the education and health care system, go to the creation of sources that ensure the spiritual development of a person, improving its physical condition, the prolongation of human existence.

The level of effectiveness of investment investment is depending on what they consist of. The structure of capital investments is their composition.

Gross investments are capital investments aimed at maintaining and increasing fixed assets or fixed capital and stocks.

One of the most important investment criteria

Profitability is one of the most important criteria that form the structure of investments and determine their priority.

Non-state investments go for profitable spheres that have high speed turnover. In the sectors of the economy, which bring minor profits, comes a small percentage of investment.

As a result of too intensive investment, inflation may occur, and as a result of insufficient - deflation occurs.

Extreme cases can be adjusted using effective tax strategies, government spending, cash and financial operationsthat implements the government.

Investments perform a very important role to resume and expand the volume of production resources, and based on this, and to ensure high growth rate of the economy.

So, as you already understood, gross investments are financial investmentswhich make enterprises in the construction of various economic and state. establishments. This type Investments are still very often called investment.

It is the harder to find a direct embedding that contains the reserves of material turnover of money, for example, in unfinished construction, raw materials and other materials or in products that are resold. Initially, it has an inseparable connection with an increase in the physical volume of reserves, and on the basis of this, the physical volume of these funds will grow.

It is necessary to draw attention to the fact that funds that are spent on the purchase of these materials are not included in gross investment.

Foreign investment go to the purchase of various precious metals and stones, such as silver, gold, diamonds, emeralds, sapphires and many others. In addition, there are also gross investments that go to the purchase of non-production assets such as land plots that are intended for planting trees.

Gross investment in drag. Metals: Gold and silver

The main tasks of gross investment

The main task of gross investment is to correctly set the level of their effectiveness, which can be characterized by the ratio of resource resources for a detachment to the result, which is obtained at a certain point. If you build correct investment strategyThe gross investment can bring an excellent result.

The investment strategy is to build a balance of transactions with money. This is used in the construction of any strategy associated with money.

The investment is considered successful if at the end of a period of investment bring minor profits, which in practice it happens not as often as I would like. Besides, no need to confuse gross and net investments. In the 2nd case, the cost of fixed capital changes after the amount of its wear is calculated. The basis of the value of gross investment is based on the value of a market transaction, because it is these factors that have a huge impact on the fact that the main capital is obsolete.

Based on this, gross investment Brings the most profit if it is compared with other types of investments. Highly an important point It acts proper formation of the strategy.

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There is a multiplier effect, the essence of which is that with a high level of investment growth, the level of production increases, resulting in income increasing. As a result, a multiple increase in gross investment may be formed, and in the end result, this will lead to loss of balance in the functioning of the state economic sphere.

Gross investments are the total investor investment in the investment facility, it does not matter in what form they are produced, and to which part of the object is spent.

Of course, gross investment is the category of real investments, whose objects are the main capital of enterprises and organizations, their coverages, construction I. overhaul buildings and structures, scientific and technical products, intangible assets. However, financial investments can also be considered as gross investment. This happens when the Company's primary acquisition of the company's financial investor issued by this company is specifically for obtaining investment on development. Further resale of these shares does not apply to gross investments, since after the primary sale further only a change of stock owners.

For example, to improve the qualifications of working, in improving them housing conditions and life, in the education of children of employees of the company. By investing the funds in this sphere, the investor involves increasing its profit in production, since the qualified work is more productive, rather than unqualified, and the normal conditions of life contribute to the rapid restoration of the physical and moral forces of employees.

Gross and net investments

Gross investments are divided into two large investment groups:

investment on the restoration of the capital used in the process,
investments aimed at increasing capital.

The restoration of the used capital occurs by transferring to the depreciation funds of the enterprise amounts equal to the undergoing value of fixed capital for production products for a specific period, usually, year. In this case, the size of such enumerations is determined by the indicator referred to as the depreciation coefficient. This indicator is different for equipment and buildings. The life of the equipment to full physical wear is the basis for determining this coefficient. For equipment, life life is located within borders from 1 year to 10 years. Buildings and structures have a regulatory service life from 7 to 50 years.

Investments aimed at increasing capital are called. This is the whole range of investments that we wrote earlier, with the exception of investments sent to the restoration of used capital. Based on this, gross investments are equal:

In I T \u003d A T + H IT, (1)

A T - depreciation in the T-Oh year;
H IT - net investments in the T-Oh year;
In I T - gross investment in the T-Oh year.

The calculation of net investments is quite laborious and complicated, so in the practice of such calculations are targeted depreciation deductions and the calculation of gross investments that statistics have long and successfully calculated. Then, from the above formula, we get gross investment minus depreciation is pure investments:

H IT \u003d in it - a t. (2).

The gross investment of formula (1) is used in the calculations of the macroeconomic indicators of the economy as a whole when calculating the gross national product and a number of other indicators.

So gross investments are taken into account when calculating GDP by:

Y \u003d c + g + in i + x n,

C - consumer expenses;
G - state expenses;
In i -vali investments;
X N - Costs for clean exports.

The ratio in formula (2) can be positive or negative:

when in IT\u003e a t, the economy develops;
when in IT.< A t экономика в стагнации, внутренних ресурсов недостаточно даже для воспроизводства капитала.

Similarly, for a separate enterprise, this ratio indicates its development.

Sources of gross investment

Sources of gross investment are:

investor's own funds;
means of co-investors or others;
bank loans and funds of other financial institutions;
states of the state;
funds from IPO (Initial Public Offering) on \u200b\u200bstock exchanges;
depreciation funds.

Most investors are trying to attract third-party funds for investment project. Investment projects have a rather high degree of risk, and to reduce their own risks, the main investor invites for the implementation of the project of other investors, while maintaining the project management as a whole. This is oriented and placing an IPO.. The company becomes public and more controlled.

Budgetary funds are involved in gross investments with investment projects that can be organized in the form of public-private partnership. The state can also invest rights on land or deposit. As an investment, the state can transfer entire state enterprises to such a PPP.

We summarize:gross and net investments are important both for a separate enterprise and for the state as a whole, for their development and normal functioning. Gross investment indicator is in the system of indicators of a separate enterprise and national state accounts, macroeconomic indicators statistical reporting.

Essence of gross investment

There are several approaches to the concept of gross investment:

The first approach is expressed on the macroeconomic level. Gross investment is the total investment in the country's economy in aggregate.
The second approach is considering gross investments as investments that are aimed at supporting and increasing the volume of fixed capital of enterprises and stocks.
The third approach implies under gross investments, all the total investor investments, which were carried out in the investment project.

Consider gross investments in the aspect of investments in fixed assets and reserves.

Note 1.

With this approach, gross investments include depreciation, as well as investment pure (that is, less depreciation). In this case, the depreciation acts as an investment resource, since cash The depreciation is deducted in the present are "temporarily free" cash. Pure investments involve investments on improving production activities, new investment projects. Often in such an aspect of gross investment is made to call the investment.

Further, gross investments are considered in the aspect of the second approach. Since consideration of gross investments as a source of growth for the main capital of the enterprise is the most important in the aspect of microeconomics.

Consider the composition of gross investment.

The composition of gross investment

Since the main object of the considered type of investment is fixed assets, the following possible composition of gross investment is allocated:

the deductions for the recovery of capital participating in industrial activities in the enterprise, with the help of depreciation mechanisms, deductions to the restoration of technical and moral wear of equipment, fixed assets on the balance sheet of the enterprise;
replacing the production capacity of the enterprise to more modern equipment and fixed assets;
modernization, production update;
investments aimed at the construction of buildings, structures.

Also, not only investments in fixed assets can be included, but also intangible assets. For example, in the acquisition of patents, know-how, trademarks and brands, licenses for the implementation of a certain type of activity, software and software products.

So, in general, gross investments can be divided into two groups:

investments whose goal is to restore and update production, fixed assets (depreciation);
the second group is investments that are aimed at increasing the volume of enterprise capital, an increase in assets (net investments).

main sources

Among the sources of gross investment, funds are allocated to investors, loans of banking institutions, state cash (state support), funds from exchange trading, depreciation funds.

Formula for calculation

Consider the calculation of gross investments in the enterprise. The first considered investment group is calculated as the corresponding depreciation and deductions for depreciation.

Thus, the gross investment formula is presented below.

Gross investments in the period under consideration \u003d depreciation in the period under consideration + pure investments in the period under consideration

This formula is also used in macroeconomics to calculate common gross investments in the country. Also, total gross investments in the country are used to calculate the gross domestic product by cost.