DYNAMICS OF THE FAIR VALUE IN ACCOUNTING Mihai RISTEA-毕业论文.doc

ANALELE STIINTIFICE ALE UNIVERSITATII ?ALEXANDRU IOAN CUZA” DIN IASI Numar special Stiinte Economice 2010 DYNAMICS OF THE FAIR VALUE IN ACCOUNTING Mihai RISTEA Bucharest Academy of Economic Studies Bucharest, Romania Ionel JIANU Bucharest Academy of Economic Studies Bucharest, Romania jianu.ionel@ Abstract Until now, the historical cost principle has dominated accountancy. At this time, another principle seems to operate: the fair value principle. The discussion will gravitate around the questions: What is fair value? How has concept of fair value evolved? How much is the fair value used as the basis for measurement in IFRS? Are we moving towards a full fair value? In conditions of economic crisis, the measurement at fair value offers pertinent information? To answer at these questions, we have realized by one hand, a description of the manner which the notion of fair value evolved and in the other hand, a deep IFRS analysis which use fair value in assets and liabilities evaluation. As a result of this study, it seems that the most of the assets and liabilities need to be measured at fair value or they may be measured at fair value, if the entity chooses this accounting treatment. Keywords: fair value, IFRS, measurement. JEL classification: D46, M41, O47 1. INTRODUCTION The evaluation is the process through which it is determined the value of the structures in the financial statements which will be recognized in the balance sheet and the profit and loss account. Making an evaluation means a great deal of judgment. Framing this process in accountancy is very complex, causing problems. The choice of the evaluation bases and the concept of maintaining the capital determine the accountancy model used to elaborate financial statements. Various accountancy models have different degrees of relevance and credibility. The evaluation in fair value seems to become the accountancy model promoted within IFRS, but this evaluation basis rises many problems owing to the complexity