FAIR VALUE IN FINANCIAL REPORTS- IMPACT OF VALUATION AND REVALUATION A CASE STUDY

Putan Alina and Dreghiciu Andreea Elena
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Putan Alina: 1 DECEMBRIE 1918" UNIVERSITY OF ALBA IULIA, BUSINESS ADMINISTRATION AND MARKETING DEPARTMENT, FACULTY OF ECONOMICS
Dreghiciu Andreea Elena: LICEUL TEHNOLOGIC AIUD, ROMANIA

Annals - Economy Series, 2024, vol. 6I, 226-233

Abstract: In order to highlight the relationship between the relevant valuation, the preparation of financial reports that reflect reality and the influence on decisions is based on the main objective pursued by the preparation of financial reports, that reflecting the true picture;the true picture can only be achieved under the conditions in which the elements of the entity are subjected to a relevant valuation process, respectively revaluation. Based on these reports, different categories of users make various decisions with impact, both at a microeconomic and macroeconomic level. The true picture of the financial position and performance achieved with fair value of all patrimonial elements allows investors to assess risk and decide on investment opportunities, as well as raising capital, the entity's managers can carry out strategic planning and set realistic and sustainable goals, creditors can determine the entity's ability to honor its obligations, increases the confidence of employees and business partners. Correct reporting ensures compliance with financial and tax regulations, preventing penalties or reputational losses.

Keywords: valuation; revaluation; financial reporting; true and fair value (search for similar items in EconPapers)
Date: 2024
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