ACCOUNTING AND ECONOMIC ASPECTS OF CLASSIFICATION AND VALUATION OF ASSETS IN THE SYSTEM OF PROFESSIONAL ACCOUNTING STANDARDS REQUIREMENTS

Abstract

One of the most important resources of any business entity is information that determines the results of its financial activities. The quality of accounting information largely depends on the efficiency and correctness of decision-making and the reputation of the enterprise. With the development of various accounting systems, new approaches to the valuation of accounting objects are being formed. The existence of numerous valuations complicates the comparison of the value of identical assets or liabilities and their analysis within the framework of different professional standards. The lack of a single approach to the valuation of accounting objects reduces the accuracy of the data obtained and increases the subjectivity of management decisions. The use of methods for valuing accounting objects that are inappropriate for modern market conditions can lead to unpredictable consequences. After all, the use of complex and opaque methods for valuing financial instruments can lead to increased losses at the enterprise. The methodological principles of financial reporting under International Financial Reporting Standards define valuation as the process of establishing the monetary amounts at which elements of financial reporting should be recognized and reflected in the balance sheet and income statement. The article considers and summarizes the results of the historical analysis of the term "valuation", compares the types of valuations of accounting objects and proposes a unified list of valuations of accounting objects at certain stages of the accounting process, both according to national standards and international ones. On the basis of the considered approaches to the classification of valuations in accounting, a distinction is made between certain types of valuations, namely "market value" and "fair value". Particular attention is paid to IFRS and Accounting Standards, which determine the methods of recognition, revaluation and depreciation of assets. The reflection of information on the valuation of assets in the accounting policy and financial statements of enterprises for making management decisions is investigated. Proposed recommendations on asset classification to ensure transparency of financial information.