FAIR VALUE VERSUS HISTORIC COST: ADVANTAGES AND DISADVANTAGES

Authors

  • Marian Socoliuc STEFAN CEL MARE UNIVERSITY OF SUCEAVA

Keywords:

fair value, historical costs, tangible assets, financial reporting, national and international accounting standards.

Abstract

For any Romanian specialist who is in a high stage regarding the perception and understanding of international accounting standards, it is quite easy to realize that at their basis are two important categories of principles: the principles of recognition and the principles of measurement.

Recognition is the process of incorporating an accounting element in an entity's financial statements. This process is an indispensable process for the entity, but using the methods used within it, the entity may alter, "cosmetize" and artificially reinforce its financial ratios.

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Published

30.05.2018

Issue

Vol. 7 No. 2 (2018)

Section

Accounting, Finance, Statistics and Economic informatics

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