<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The revaluation of the assets represents the economic operation as a result of which the carrying amount of the assets is correlated with their current value, thus ensuring relevant data registration in annual financial statements and, through this, more accurate information of accounting data users. The evaluations made during the reorganization of enterprises (fusions, divisions) don’t form a revaluation, these evaluations aiming the determination of the exchange ratio of all the balance sheet elements. Exceptions are the cases where the date of the financial statement that underlies the reorganization is the same date of the annual financial statements. The revaluation of tangible assets is made at their fair value at the date of the balance sheet. The assets’ fair value is determined based on evaluations usually made by authorized evaluators, according to the law. The historical costs principle is based on the hypothesis of the stable monetary union, which means that is respecting the nominal values of the currency without taking into account of the purchasing power variations. The practice in the field showed that the application of the fair value in accounting is leading to obtain annual financial statements which provide better information regarding the present and future performances of the economic entity.</p></abstract>

The revaluation of the assets represents the economic operation as a result of which the carrying amount of the assets is correlated with their current value, thus ensuring relevant data registration in annual financial statements and, through this, more accurate information of accounting data users. The evaluations made during the reorganization of enterprises (fusions, divisions) don’t form a revaluation, these evaluations aiming the determination of the exchange ratio of all the balance sheet elements. Exceptions are the cases where the date of the financial statement that underlies the reorganization is the same date of the annual financial statements. The revaluation of tangible assets is made at their fair value at the date of the balance sheet. The assets’ fair value is determined based on evaluations usually made by authorized evaluators, according to the law. The historical costs principle is based on the hypothesis of the stable monetary union, which means that is respecting the nominal values of the currency without taking into account of the purchasing power variations. The practice in the field showed that the application of the fair value in accounting is leading to obtain annual financial statements which provide better information regarding the present and future performances of the economic entity.

The Reevaluation of Tangible Fixed – Accounting and Tax Implications

“Dimitrie Cantemir” Christian University Bucharest

International conference KNOWLEDGE-BASED ORGANIZATION

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"The Reevaluation of Tangible Fixed \u2013 Accounting and Tax Implications"}

The revaluation of the assets represents the economic operation as a result of which the carrying amount of the assets is correlated with their current value,...

The Reevaluation of Tangible Fixed – Accounting and Tax Implications

Published Online: Jul 20, 2020

Page range: 63 - 70

DOI: https://doi.org/10.2478/kbo-2020-0054

Keywords
fair value, historical cost, accountingvalue, bookvalue, revaluation

© 2020 Mihaela Nicoară, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Reevaluation of Tangible Fixed – Accounting and Tax Implications

Published Online: Jul 20, 2020

Page range: 63 - 70

DOI: https://doi.org/10.2478/kbo-2020-0054

Keywordsfair value, historical cost, accountingvalue, bookvalue, revaluation

© 2020 Mihaela Nicoară, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
fair value, historical cost, accountingvalue, bookvalue, revaluation