HISTORICAL COST VERSUS FAIR VALUE

The current process of accounting globalization is based mainly on the concept of just value. This concept has been the source of vivid debates with regards to its meaning in contemporary accountancy, both in theory and in practice. The increased importanhistorical cost, fair value, valuation, accounting system

Analysis of International Accounting Regulations with Regards to Fair Value

Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand. One of the coordinates of accounting globalization is the fair value based valuation system. This tendency arises from the contents of international accounting standards and from the progress of world-wide regulating practice. The economic and market events of the past years have highlighted the importance of fair value measurements used in financial statements and have emphasized the need for consistency and comparability in those measurements in financial statements prepared around the globe.fair value, harmonization, IASB, FASB, Accounting Directive, IFRS, FAS, Exposure Draft

CASE STUDY ON RE-ADJUSTMENTS DEPENDING ON PRICE MODIFICATION

Inflationary moments, characterized by significant price rises, have proved that accountingsystems based on historical costs provide a distorted image of the reality: the elements ofthe balance sheet are under-valuated, and the stock-related expenses and amortization in theprofit and loss account are also under-valuated. Under these circumstances, the result isover-valuated, and its distribution leads to allotments from the company’s capital. In thispaper we draw up a case study with regards to the methods used for adjusting pricemodification, clearly outlining, through a comparative analysis, the main differencesbetween the accounting system based on historical cost and inflation accounting

HISTORICAL COST VERSUS FAIR VALUE

The current process of accounting globalization is based mainly on the concept of just value. This concept has been the source of vivid debates with regards to its meaning in contemporary accountancy, both in theory and in practice. The increased importa

Drop-Shipping – A Business Model Without Holding Inventory: A Case Study of Online Store

Drop-shipping is a recently new, commonly used fulfilment method, especially in e-commerce sites. By applying dropshipping, many businesses and e-commerce sites have the possibility to reach a much greater customer base, as well as manage their business without holding, in most cases, any product as stock. This order fulfilment method has made possible the existence of drop-shipping as a business model, people from all over the world being able to sell items internationally, without ever seeing them. Also, the start-up cost for such a business is rather low, since there is no need for deposit means, a physical store, or even employees. However, the low barrier of entry this business model determines many people to try it, which is why the competition is very high. Even though the business looks easy, the low barrier of entry and the great competition means that only a small fraction of the new drop-shipping businesses get profitable. This paper will analyze what are the odds of turning such a business profitable while also looking at which are the pillars of drop shipping and most importantly, how the people who succeed are doing it. The proposed theoretical model is illustrated through a case study conducted at a dropshipping store that is selling back posture correctors. The results of the study are useful both, for practitioners and scholars interested in the topic of drop-shipping

Analysis of International Accounting Regulations with Regards to Fair Value

Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand. One of the coordinates of accounting globalization is the fair value based valuation system. This tendency arises from the contents of international accounting standards and from the progress of world-wide regulating practice. The economic and market events of the past years have highlighted the importance of fair value measurements used in financial statements and have emphasized the need for consistency and comparability in those measurements infinancial statements prepared around the globe

THE QUALITY OF ACCOUNTING DATA – AN ABSOLUTE REQUIREMENT

The large variety of uses that accounting products take, as well as their wide range of informational needs require that certain criteria be established, with regards to the quality of accounting data, and these criteria must be fully met. The concept o

FAIR VALUE MEASUREMENT UNDER IFRS 13

The IFRS 13, „Fair Value Measurement”, was first published in May 2011 and it applies to annual reporting periods that begin on or after January 1st 2013; this standard comes as a result of shared efforts on the part of the IASB and the FASB to develop a convergent framework regarding fair value measurement. The main purpose of this paper is to describe the main provisions of the IFRS 13 regarding fair value measurement, with a special emphasis on key concepts found throughout the standard, which refer to the principal market, the most advantageous market, the highest and best use, valuation techniques, and value hierarchy

International Accounting Convergence in the Field of Fair Value Measurement

The investors’ desire for high-quality, internationally comparable financial information that is useful for decision-making in increasingly global capital markets imposed an international convergence, the ultimate goal of which is a single set of international accounting standards that companies worldwide would use for both domestic and cross-border financial reporting. The guidance, set out in IFRS 13 Fair Value Measurement and the update to Topic 820 (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRSs and US GAAP and to bring about their convergence. This article describes the controversial history of fair value measurement and the main novelties in the field of fair value measurement, arising from the international convergence process

Fair value assessment – valences and limitations

In recent years, FASB and IASB have intensified research on fair value measurements and planned to further expand the scope of applicability of fair value measurements. However, organizations responsible for formulating the principles, enterprises, social bodies and academia are locked in a dispute over the advantages and disadvantages of fair value measurements, and no consensus has been reached yet. This paper explores the arguments for and against fair value and tries to find out whether advantages are superior to disadvantages of fair value measurements.fair value, FASB, IASB, measurement