+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
International Accounting
 

Revaluation and its importance for the assessment of value of assets of the business entity

Vol. 20, Iss. 9, MAY 2017

PDF  Article PDF Version

Received: 18 November 2016

Received in revised form: 16 December 2016

Received in final form: 31 January 2017

Accepted: 6 March 2017

Available online: 15 May 2017

Subject Heading: FINANCIAL ACCOUNTING

JEL Classification: G30, L25, M21, M41

Pages: 521-531

https://doi.org/10.24891/ia.20.9.521

Novikova N.E. Financial University under Government of Russian Federation, Moscow, Russian Federation
nnemw@mail.ru

Novikov V.A. Financial University under Government of Russian Federation, Moscow, Russian Federation
vanovikov@yandex.ru

Subject To assess the reliability of business partners and management decisions, the composition and changes in the value of assets of the economic entity are important. These indicators depend on the evaluation of assets for reporting, taking into account their revaluation and allowance for impairment.
Objectives The paper aims to summarize the approaches to integrate the facts of economic life, arising from the revaluation in accordance with the causes of the need to adjust the value of various assets.
Methods This paper analyzes the factors which give rise to changes in the cost of various types of assets, the accounting treatment and reflection of revaluation of various asset classes in reporting.
Results Having studied the causes of changes in the value of various types of assets, we reveal that inflationary processes are the main factor for non-current assets and long-term use current assets. However, there are other pricing factors influencing the current market value of assets. These factors should not be equated. We also show that the revaluation of financial investments affects the financial results of the current reporting period, however, it cannot be the basis of profit distribution.
Conclusions The article concludes that in order to enhance the transparency of financial statements, it is useful to consider the results of the revaluation of all types of assets in the total profit/loss separately, rather than as an integral part of the net profit/loss of the reporting period.

Keywords: revaluation of assets, balance sheet, income statement, accounting, financial statements

References:

  1. Grechenyuk A.V., Grechenyuk O.N. [The review and systematization of approaches to the financial analysis of profit organizations in Russian course books]. Obshestvo: politika, economika, pravo = Society: Politics, Economics, Law, 2015, no. 1, pр. 20–24. (In Russ.)
  2. Bank S.V., Bank O.A. [Accounting (financial) reporting as the basis of analysis of the investment attractiveness of commercial organizations]. Obrazovanie. Nauka. Nauchnye kadry = Education. Science. Scientific Personnel, 2014, no. 4, pp. 125–129. (In Russ.)
  3. Rabinovich A.M. [Financial statements of commercial organizations]. Bukhgalterskiy uchet = Accounting, 2014, no. 6, pp. 104–109. (In Russ.)
  4. Novikova N.E. Pribyl' v upravlencheskom uchete. V sbornike nauchnyh trudov: Problemy sovremennogo finansovogo i upravlencheskogo ucheta [Profit in management accounting. In: Problems of modern financial and management accounting: A collection of scientific works]. Moscow, Finakademiya Publ., 2010, pp. 73–76.
  5. Novikov A.M. Denezhno-kreditnaya sistema: novye vyzovy. V sbornike nauchnyh statei: Effektivnoe gosudarstvennoe i munitsipal'noe upravlenie kak faktor sotsial'no-ekonomicheskogo razvitiya Rossii [The monetary and credit system: new challenges. In: Effective State and municipal management as a factor of socio-economic development of Russia: A collection of scientific works]. Moscow, Prospekt Publ., 2014, pp. 104–109.
  6. Rozhnova O.V. [Fair value in the situation of a significant reduction in the scope of the activities]. Korporativnaya finansovaya otchetnost'. Mezhdunarodnye standarty = Corporate Financial Statements. International Standards, 2013, no. 9(77), pp. 13–18. (In Russ.)
  7. Kruglova V.Yu. [The way to properly reassess the non-current assets]. Bukhgalterskii uchet = Accounting, 2013, no. 8, pp. 16–20. (In Russ.)
  8. Yarkovskii P.A. [Management decisions in the evaluation of fixed assets at their fair value]. Problemy ucheta i finansov = Problems of Accounting and Finance, 2013, no. 2(10), pp. 55–58. (In Russ.)
  9. Novikova N.E. Uchetnye podsistemy raspredeleniya i ispol'zovaniya pribyli. V sbornike nauchnyh statei: Sovremennye problemy bukhgalterskogo ucheta [Accounting subsystems of distribution and use of profit. In: Modern problems of accounting: A collection of scientific articles]. Moscow, Finakademiya Publ., 2009, pp. 63–69.
  10. Lychagina L.L., Ryabova V.V. [The international practice of accounting for intangible assets]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2015, no. 4-2(57-2), pp. 669–673. (In Russ.)
  11. Priobrazhenskaya V.V. [Complicated questions of accounting for intangible assets]. Nalogovaya politika i praktika = Tax Policy and Practice, 2016, no. 2(158), pp. 40–44. (In Russ.)
  12. Mislavskaya N.A. [The measurement and recognition in accounting of financial investment of the organization]. Ekonomika i sotsium, 2013, no. 2-2(7), pp. 133–137. (In Russ.)
  13. Priobrazhenskaya V.V. [Valuations of financial assets in terms of volatility of stock markets]. Nalogovaya politika i praktika = Tax Policy and Practice, 2014, no. 9, pp. 61–63. (In Russ.)
  14. Zhitlukhina O.G. [Fair value of financial instruments is an important condition to improve the quality of financial reporting in the aspect of IFRS]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2015, no. 6-1(59-1), pp. 1098–1107. (In Russ.)
  15. Druzhilovskaya T.Yu., Druzhilovskaya E.S. [The consolidated statement of profit or loss and other comprehensive income]. Bukhgalterskii uchet = Accounting, 2015, no. 6, pp. 22–28. (In Russ.)
  16. Druzhilovskaya E.S. [Fair value: problems and prospects in accounting]. Sistemnoe upravlenie = System Management, 2013, no. 4(21), p. 14. (In Russ.)
  17. Kazakova V.S. [The market and fair value in International Standards of Financial Reporting]. Mir nauki i innovatsii = World of Science and Innovation, 2015, vol. 13, pp. 72–75. (In Russ.)
  18. Matskyavichene E.V. [The future of reporting]. Bukhgalterskii uchet = Accounting, 2015, no. 4, pp. 122–123. (In Russ.)
  19. Ivanova O.V. [Fair value in the system of value measurement of assets and liabilities]. Uchet i statistika = Accounting and Statistics, 2013, no. 2(30), pp. 59–67. (In Russ.)

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 27, Iss. 3
March 2024

Archive