Importance The research investigates issues of the theory and practices business entities in the Russian Federation use to remeasure fixed assets. Objectives The research systematizes contemporary theoretical and practical issues of revaluing fixed assets and its recognition in financial accounting records. Methods The research draws upon general scientific principles and methods, i.e. analysis and synthesis, induction and deduction, systematization of theoretical fundamentals and practices of fixed asset revaluation. As part of the comprehensive approach, we used methods of observation, grouping and comparison. Results Relying upon professional judgment, we systematized approaches to remeasuring items of fixed assets for purposes of financial, tax and statistical accounting. The article reviews how professional judgment influences the financial position of the business entities and its net assets, when remeasuring its fixed assets. We identifies contemporary issues of accounting for fixed assets at the remeasured value and indicate possible solutions. Conclusions and Relevance There is still a little scientific underpinning of improving the methods for revaluation of fixed assets, its aspects and its influence on the financial position of entities, if considered within the concept of professional judgment. Zero-imperative and difference in the terminological framework necessitate professional judgment when choosing approaches to accounting of fixed assets as a whole and their revaluation in particular. Having analyzed possible revaluation scenarios, we saw that different interpretations of the recoverable amount could substantially influence figures of financial statements and net assets of the entity. Being of theoretical and applied nature, the findings can be used in accounting practices of businesses in different industries.
Keywords: professional judgment, fixed assets, revaluation
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