Operation and Modernisation of Fixed Assets at Machine-Building Enterprises

Abstract

Abstract. The article presents the research into the issues of operation and modernisation of fixed assets that is of particular importance in conditions of investment development by machine-building enterprises at the modern stage of the economic development of Ukraine. Investments targeting particular facilities (buildings, transportation means, and equipment) stress the relations between investments and fixed assets. Modernisation seen as improvement of functional features of equipment, taking into account the stimulating factors, helps increase the production quality indicators.Key words: modernisation, fixed assets, fixed assets operation, life cycle of fixed assets, factors of modernisation, improvement of fixed assets, machinebuilding enterprises, depreciating of fixed assets. Problem statementThe importance of material factors of production -the fixed assets -has increased during the past years. The increase of production volume occurs due to the effective use of productive fixed assets. Economic efficiency of machine-building enterprises depends on certain indexes. One of the basic indicators is production capacity of fixed assets. The basic problem of fixed assets operation is their maintenance, renovation and successful exploitation for further work at the enterprise. The solution of this problem can be facilitated through extensive study and research into modernisation as renovation of the active (productive) part of fixed assets and improvement of production quality indicators (labour productivity, quality of products, operating lifetime). Considering that repair works can fully renew primary properties and prevent premature wear one can state that there is possibility to maintain successful operation of fixed assets. Today management of machine-building enterprises of Ukraine practically does not use the system of preventive maintenance, that negatively affects maintenance, modernisation and use of fixed assets. So the issue of fixed assets operation efficiency comes to the forefront in studying and researching the enterprise activirties. Analysis of the recent research and publicationsHome and foreign scholars do research into the issues related to effective enterprise activities by improving fixed assets operation. On the one hand, this can be done through modernisation, and on the other hand, through improvement of professional qualities of maintenance personnel engaged in production. The issues related to effective activities of enterprises, successful operation and modernisation of fixed assets have been studied by many scientists, among them being: Melnyk S., Mochernyi S., Kravchenko O., Kuzmin O., Osypov V., Horngren С. T., Foster G., Datar S. M., Dubinin S. and others. The enterprises that are operating fixed assets that do not meet modern technological requirements, must modernize and use them most effectively. It is especially relevant in modern social and economic environment characterized by lack of financing and investments. Research objectiveThe aim is research into the aspects of suc...

Improvement of financing system of technological development on Ukrainian agricultural machine-building enterprises

“…Financing of RTD in Ltd. SPE "BILOTSERKIVMAZ" for 2017-2018 is covered for 100% at the expense of the enterprise's own funds. According to Article 138 of the Tax Code of Ukraine, the list of expenditures on RTD includes [3]:  depreciation on fixed assets and intangible assets (except for buildings and structures) used at the enterprise in the course of scientific research and development work;  the cost of remuneration of personnel involved in carrying out research and development;  material costs directly related to the conduct of research and development work; other expenses related to the carrying out of scientific researches and RTD; the cost of works under contracts for the implementation of scientific and research works, contracts for the implementation of RTD in the event that the taxpayer acts as the customer of scientific research and research and technological development.The expenses of enterprises on RTD are recognized for tax purposes regardless of the results obtained[4].As in Ukraine there is a discrepancy between the existing innovative potential and the financial and economic possibilities of its realization, in Ltd. SPE «BILOTSERKIVMAZ» has formed its own concept of development of an innovative type enterprise.The need to develop a mechanism for strategic innovative development of enterprises requires clarification of the substantive component of the concept of "innovation strategy" in the current economic environment, as well as the development of new approaches to the processes of its formation and choice.Remaining Profit Ltd. SPE «BILOTSERKIVMAZ» is used by them independently and is directed to further development of business activity. No authorities, including the state, have the right to interfere in the process of using the enterprise's net profit.…”