Advanced Search
MyIDEAS: Login

Historic Cost Versus Fair Value

Contents:

Author Info

  • Mariana Man

    ()
    (the University of Petroaani, Romania,)

  • Bogdan Rivas

    (the University of Petroaani, Romania,)

  • Liana Gadau

    (the “Valahia” University of Targoviste)

Registered author(s):

    Abstract

    The value of accounting registering based upon historic cost is a sure and checkable value, written in a document that certifies a property right upon a certain good, a debt right or a debt. Historic costs’ evaluation consists in registering goods in-comings into the company’s patrimony at their buying cost, namely their historic cost, with no further modification although the real value changes. Fair value is the foundation of IFRS referential which displays basic principles, largely inspired by US GAAP, although they are not mentioned by them. Fair value evaluation is opposed to the principle of prudence, one of the main principles of French accounting law (also taken over by Romanian accounting standards) owing to which only possible losses are registered while potential profits are ignored. The issues that occur refer to the impact of the evaluation according to the fair value upon the accounting data of the company, namely upon the balance sheet and the results account drawn out on the basis of the fair value registrations. At the same time, the evaluation according to the fair value has determined a new foundation in displaying a company’s performance. This issue determines the following question: “Which is closer to the truth and more credible? A result calculated according to the fair value or one which is founded upon historic cost?”

    Download Info

    If 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.
    File URL: http://www.pjms.zim.pcz.pl/PDF/PJMS4/HISTORICCOSTVERSUSFAIRVALUE.pdf
    Download Restriction: no

    File URL: http://pjms.zim.pcz.pl/historic-cost-versus-fair-value.php
    Download Restriction: no

    Bibliographic Info

    Article provided by Czestochowa Technical University, Department of Management in its journal Polish Journal of Management Studies.

    Volume (Year): 4 (2011)
    Issue (Month): 1 (September)
    Pages: 1-238

    as in new window
    Handle: RePEc:pcz:journl:v:4:y:2011:i:1:p:135-150

    Contact details of provider:
    Web page: http://www.pjms.zim.pcz.pl/edi/
    More information through EDIRC

    Related research

    Keywords: historic cost; fair value; International Accounting Standards (IAS); International Financial Reporting Standards (IFRS); accounting data; accounting principles; performance;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pcz:journl:v:4:y:2011:i:1:p:135-150. See general 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: (Paula Bajdor).

    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.