The Opening Of Accounting To The Present Value In The Context Of Passing From The Accruals To Cash
AbstractPassing through the globalization period, we are witnesses of a larger gateway to the values general accepted in the developed and developing countries. Part of this process is represented by the accounting craft. So, after the period when accounting was representing a static image and then a dynamic one, now it seems to be in accordance with this continuing evolution. As long as more companies are using the IFRS and the evaluation of assets and debts is based on the fair or present value it is talking about as it is named an actuarial accounting. According to the development of an economy, the actual (present) value means an estimation of future cash flow by a rate. Practically seems to be an inclination towards the engagement accounting as long as the events are recognized & reported when arise not when cash is collect or paid. In spite of this, for a company a good profit and loss account doesnï¿½t mean a strong treasury situation too. Even if, there is a convention of using the accrual accounting I try to develop o strategy regarding the cash flow information ï¿½ based on the cash accounting as an exception of this, for a correct evaluation of liquidity, knowing the strong influence for economic decisions. So, the cash foresees are used for the financial security of company through an adjustment of unjustified payments. Regarding to all of those reasons, a joining of accruals with cash may be an important factor for a correct evaluation financial statements.
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 Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.
Volume (Year): 3 (2008)
Issue (Month): 4(6)_Winter2008 ()
Contact details of provider:
Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14
More information through EDIRC
accrual ï¿½ engagement accounting; cash ï¿½ treasury accounting; liquidities; present ï¿½ actual value; IAS;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Stefanescu).
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.