Application of the Entity Assets Measurement Methods in Preparing the Financial Statements

Abstract

Abstract

In conditions of globalization of the world economy, development of the assets measurement uniformed rules  and methods is deemed one of the most important factors  for ensuring  competitiveness of entities  of the international markets.

According to  requirements of the International Financial Reporting Standards, a clause that meets a meaning of element of the financial reporting, should be recognized and reflected in the financial statement if it has a par value or a value and, can be measured reliably. This requirement relates also to the assets reflected in the financial reporting, which fair value may be changed during a time due to various reasons. Therefore, an entity should re-measure within certain intervals of time the assets it holds and, fix their fair value as at a given moment. Considering the aforementioned, the issues of measurement of the assets of enterprises, is critically important.

The present Article deals with  the methods of measurement used for certain classes of assets,   as well as the real value measurement issues and, and the author’s opinion on  all this.

 

Key words: Asset; Measurement; Fair value, Financiasl reporting.   

JEL Classification:M 41