THE FAIR VALUE – REPRESENTATION OF THE MARKET VALUE IN ACCOUNTING. TRENDS AND PERSPECTIVES IN ROMANIAN ACCOUNTING PRACTICE
Journal Title: CES Working Papers - Year 2011, Vol 3, Issue 2
Abstract
The market value, as a method of measuring the right value, also provides the highest objectivity due to the fact that it is based on information exterior to the entity, impossible to influence in anyway. For the fair value of a product to be equivalent to the market value, a prerequisite needs to be followed: the market must be perfect, namely organized and active. In this case, the evaluation’s type is mark et to market. In certain fields, the active’s market existence is clearly difficult (for instance for the derived products or specialized, unique assets etc). In such situations – imperfect market – we will valorize that specific good by calculating its fair value by using an evaluation technique, an alternative technique in the absence of a price set by the market. There are two possible approaches: the first one belongs to the analogy method; the second approach belongs to valuing an asset using the modeling technique also known as market to model. The method of determining the value of an asset by analogy or similarity is theoretically valid, but in practice this is difficult, since the notion of similar characteristics is often difficult to establish and prove. This article proposes a valuation of the market value concept based on Romanian realities - legal, accounting practices in that area,and taking into account the existing fiscal limitations.
Authors and Affiliations
Marinela Manea
Keywords
Related Articles
- EP ID EP92144
- DOI -
- Views 140
- Downloads 0
THE ONLINE VISIBILITY OF THE ROMANIAN HOTELS. EMPHASIS ON THE HOTELS FROM THE NORTH-EAST REGION OF ROMANIA
The purpose of the present research is to analyze the online visibility of Romanian hotel websites and what mistakes are identified once we analyze the hotel content. At the same time we want to provide a complex overvie...
THE EU’S VOICE BEYOND ITS BORDERS: THE EUROPEAN UNION’S EXTERNAL COMMUNICATION
The EU’s developing global role demands a new approach to communications outside the Union. Besides communicating its policies to its citizens in order to enhance their trust in the idea of the United Europe, it is...
Milestones for the resilience of the cross-border regions
The specific goal of this research paper is to identify the main possible areas of intervention in the cross-border regions to induce institutional and social changes, policy embodied, for a better support to economic de...
EU POLICIES REGARDING THE DEVELOPMENT OF TRUST-LIKE DEVICES - RECENT CHALLENGES, ACHIEVEMENTS, PROSPECTS AND TERMINOLOGICAL INSIGHTS
“Trust” is a versatile instrument which is suitable for a great variety of purposes. Many scholars believe, that the original form of this institution appeared in common law, while in the 20th century the process o...
Russian policy, Russian Armenians and Armenia: ethnic minority or political leverage?
The 2018 “Velvet revolution” in Armenia has raised numerous questions regarding its possible implications for Armenian-Russian relations. Given that there was a tendency for revolutions in postSoviet countries to signifi...