The Importance and Necessity of Heritage Evaluation

Mircea-Iosif Rus ()
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Mircea-Iosif Rus: NIRD URBAN-INCERC Cluj-Napoca Branch

Ovidius University Annals, Economic Sciences Series, 2022, vol. XXII, issue 2, 1010-1014

Abstract: Valuation in accounting has gained considerable importance lately due to the fact that the value obtained as a result of this assessment can be the basis for positive results in the financial statements, which can lead to dividends or the sale of the company to potential investors. For this, the measurement obtained must be a present value or fair value, a market value of the company's assets. Although there are still some companies that value assets at a historical cost, many other companies prepare a fair value measurement, as the legislation allows for the existance of a mix of methods for valuing assets. We cannot say that the valuation at fair value is the best accounting method but it is increasingly accepted because, after the economic crisis of 2007-2008 as well as the Sars COV-2 pandemic, it reflects a value close to current reality.

Keywords: valuation; assets; historical cost; current cost; fair value (search for similar items in EconPapers)
JEL-codes: D24 G32 M41 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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