ISSUES OF THE ESSENCE AND CLASSIFICATION OF LONG-TERM ASSETS

Аннотация

This article analyzes the theoretical issues of long-term assets in accounting. In various approaches, such assets in regulatory documents are presented as resources purchased by enterprises for shares, bonuses or long-term exploitation. Also, long-term financial investments and assets recognized as investment property are considered one of the effective directions for future capital investment. Therefore, it is urgent to reconsider the classification and characteristicsof long-term assets. Keywords: long-term assets, principles, development trends, costs, royalties, law, uncertainty, practice, attitude, investment,investment property. Introduction. An enterprise must have the necessary economic resources for its effective operation, since it is these resources that are the main factor in the production of goods or services. The expansion of market relations is increasing competition in the economy, and in this environment, economic entities that are able to use existing resources rationally and purposefully gain an advantage. In economic theory, all tangible and intangible assets used by an enterprise in itsproduction activities are called assets. In the process of adapting to international financial reporting standards in Uzbekistan, assets began to be divided into two types - long-term and short-term assets. This new approach differs from the classification in the previous standard accounting plan - long-term and current assets. Assets are classified as long-term ifthey meet thefollowing conditions: •mustbe acquired for useinthe production orservice activities of theenterprise; •they mustbe intended for permanent use, not for sale; •musthave auseful lifeofmore than oneyear. The main purpose of long-term assets is to be used effectively in the production of products, the provision of services, and the sale of goods. They can also be used for rental, administrativepurposes, or tomaintain fixedassets in working condition. Review of relevant literature. Long-term assets are the main economic tool for the effective implementation of production and service activities of an enterprise. In enterprises operating in the manufacturing sector, a significant part of the property belongs to this type of assets [12]. The condition of these assets and the level of their effective use directly affect the economicresults of theenterprise. Through the full and targeted use of long-term assets, all technical and economic indicators of the enterprise are improved: increased labor productivity, increased return on funds, increased production volumes, reduced costs, and savings on capital investments are ensured[21]. In such conditions, it is important to properly conduct economic analysis in order to make rational management decisions and implement them inpractice[3]. https://ijmri.de/index.php/jmsi volume 4,issue5,2025 367 In today's market economy, accounting serves as a reliable and excellent source of information for the management of the enterprise and its owners. It remains an important tool in forming product costs and prices, controlling theprocess ofeffective use of long-term assets, and assessing investment potential[23]. The economic reforms being implemented in Uzbekistan are aimed at fundamentally renewing the structure of the economy and its sustainable development. In this process, it is important to identify the liberalization and modernization of private property relations as one of the priority tasks[3]. At the same time, there is a need to eliminate ambiguities in the concepts of the criteria for assessing and classifying long-term assets. In particular, in countries whose economies are transitioning to market principles, including Uzbekistan, the valuation principles andcriteria used in accounting need tobe clarified[24]. As market relations develop, current accounting policies prevent the correct reflection of new types of assets in financial statements. For example, objects such as royalties, goodwill, the right to occupy land plots as property, long-term receivables, deferred expenses, long-term financial investments and leasing relations are not sufficiently reflected in accounting practice[22]. The above circumstances indicate that the accounting of long-term assets requires a comprehensive study of theoretical, legal, organizational and methodological aspects. This makes theneed for theformation ofperfect accounting mechanisms for themeven more urgent. According to I.I. Ismanov, capital turnover is divided into fixed and working capital. Fixed capital restores its original value over several cycles, whereas working capital regains its previous form after a single turnover. Based on the turnover of capital, fixed capital value is split into two parts. One part becomes part of finished goods and is realized as cash through sales andrecorded as depreciation. Theother remains in production as material orintangible capital. Working capital transfers its entire value into products during one cycle, fully t