Rules of Valuation and Presentation of Assets in Balance Sheets
AbstractSocial, economic and legal factors resulted in differences in the financial statements from one country to another. These factors have contributed to use different criteria to recognize the structure of financial statements and the option for different bases of valuation. They also affect the scope and disclosures in the financial statements. Committee IASC is employed in mitigating these differences and seeks to harmonize regulations, standards and procedures for preparing and presenting financial statements. Harmonization requires that financial statements provide useful information for making economic decisions. The elements in balance sheets are recognized according to four basic criteria: definition, measurable character, relevance, reliability. The valuation of the elements in balance sheets is one of the most difficult accounting issues. The elements presented in financial statements are valued using the rules of „historical cost” or basic accounting procedures. The issue of the valuation of items that are an entity’s assets has been analysed in many studies and various opinions have been expressed, some of them transforming into real balance sheet theories. The difficulties encountered when it comes to establishing “definitive” valuation rules are generated by the aim pursued: the faithful image of assets or the user’s interest. The elements presented in financial statements are valued according to the provisions of the regulations in force, the Accounting regulations in accordance with the Fourth Directive of the European Economic Community and the International Accounting Standards, after the rules of „historical cost” or basic accounting procedures.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.
Volume (Year): X (2010)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice
More information through EDIRC
assets; balance sheets; cost; value.;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeflea Victor).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.