FAIR VALUE VERSUS HISTORIC COST: ADVANTAGES AND DISADVANTAGES
FAIR VALUE VERSUS HISTORIC COST: ADVANTAGES AND DISADVANTAGES
Author(s): Marian SocoliucSubject(s): Business Economy / Management, Accounting - Business Administration
Published by: Asociaţia de Cooperare Cultural-Educaţională Suceava
Keywords: fair value; historical costs; tangible assets; financial reporting; national and international accounting standards;
Summary/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.
Journal: Ecoforum
- Issue Year: 7/2018
- Issue No: 2
- Page Range: 0-0
- Page Count: 4
- Language: English