Balance of Fixed Capital Stock definition of Balance of Fixed Capital Stock in the Free Online Encyclopedia.

Balance of Fixed Capital Stock

a balance compiled in monetary form to obtain data on the volume and structure of assets as the most important part of the country’s national wealth and on the rate of growth of fixed capital stock by designation, by branches of the economy, and by forms of ownership. The balance of fixed capital stock is a component of the balance of the national economy of the USSR, and it can be constructed by data of individual republics or the national economy as a whole.

Fixed capital assets by designation break down into two types—productive and nonproductive—and for each of them the assets are grouped correspondingly by branches of material production and branches of the nonproduction sphere. Fixed capital stock of the national economy (including livestock) on Jan. 1, 1969, amounted to 637.4 billion rubles (in 1955 prices), of which 61.4 percent comprised productive assets and 38.6 percent, nonproductive. Productive fixed assets of individual branches of material production made up the following percentages in the total of fixed capital stock of the national economy: industry, 30.0 percent; construction, 2.5 percent; agriculture, 12.3 percent; transport, 12.0 percent; communications, 0.9 percent; trade, food service, procurements, and material and technical supply, 3.6 percent; and other branches of material production, 0.1 percent. Nonproductive fixed assets included housing, 25.6 percent; communal economy and everyday services, 3.8 percent; and public health, education, science, the arts, and other areas, 9.2 percent.

Fixed capital stock is also calculated by forms of ownership: state; cooperative enterprises and organizations, including kolkhozes; and personal property of the population.

The balance of fixed capital stock is compiled in two evaluations: in the original full cost and the original full cost minus depreciation. The balance of fixed capital stock is necessary for the planning and accounting of the reproduction, renewal, and efficient utilization of the fixed capital stock. It is of great importance for the economic analysis of fixed capital assets and the planning of capital investments.

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