| Autor: Stanisław Hońko | 55 |
Strony: 55-68
pełen tekst
A CONCEPT OF PRUDENT VALUATION IN ACCOUNTING
Summary
Financial statements users expect information about the level of future economic benefits from the invested capital. In order to provide such information, historical cost accounting is being replaced. Fair value is an example of prospective parameters of valuation, that allows to approximate book value of financial statement items to their current market value. In such a context a question may be formed: what is the actual importance of prudence principle? The thesis is an attempt of analysing the actual importance of prudence principle. The reflections presented in the thesis refer to the history of accounting, including the balance sheet theories, such as the dynamic balance sheet theory, the organic balance sheet theory or a priori theories. The purpose of the thesis was to elaborate the concept of prudent valuation in accounting, which would take into account balance sheet theories and actual information demands of financial statements users.
pełen tekstA CONCEPT OF PRUDENT VALUATION IN ACCOUNTING
Summary
Financial statements users expect information about the level of future economic benefits from the invested capital. In order to provide such information, historical cost accounting is being replaced. Fair value is an example of prospective parameters of valuation, that allows to approximate book value of financial statement items to their current market value. In such a context a question may be formed: what is the actual importance of prudence principle? The thesis is an attempt of analysing the actual importance of prudence principle. The reflections presented in the thesis refer to the history of accounting, including the balance sheet theories, such as the dynamic balance sheet theory, the organic balance sheet theory or a priori theories. The purpose of the thesis was to elaborate the concept of prudent valuation in accounting, which would take into account balance sheet theories and actual information demands of financial statements users.