If you are an entrepreneur, you have surely heard people around you discussing fair value. <\/p>\n
What is the connection between Financial Reporting and Fair Value? How does such a report help you make the right decisions for your company? <\/p>\n
There are only two questions whose answers you will find in this article. <\/p>\n
According to the Financial Reporting Standards, fair value is a type of value that represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.<\/p>\n
In order to comply with various financial reporting standards, companies may be required to have an independent and objective estimate of the fair value of their assets and liabilities prepared by a certified valuer. Given that the purpose of the valuation is in an inter-conditional relationship with the type of value \u2013 the former will always determine the type of value, we can list the main purposes, benefits and applicability of these below:<\/p>\n
\u2013 Estimating the fair value of an asset or liability for recording in the accounting records, by types and classes of tangible or intangible assets, or estimating the value of the shares held by a company in the capital of other companies;<\/p>\n
\u2013 Allocation of the purchase price of an asset or a business: identifying the level of goodwill attached to a transaction (the difference between the purchase price paid for the transfer of the business and the fair value of the identifiable net assets acquired);<\/p>\n
\u2013 Impairment testing of goodwill, tangible assets and intangible assets (to determine whether there is any indication that the asset may be impaired);<\/p>\n
\u2013 Classification of leases: inclusion in the lessor's financial statements as either operating leases or finance leases.<\/p>\n
To estimate fair value, a valuer will take into account several elements and aspects: the type of unit of account (an individual asset or a group of assets), the type of input data (which will determine the fair value hierarchy), the way in which the asset is used or classified by the reporting entity, whether the assets are recorded or are to be recorded in the accounting records, the date of the valuation, the selective valuation of a part of the asset class or the entire class, the detail of the fair value allocation process, the significant assumptions agreed upon by the valuation terms of reference, etc. <\/p>\n
If you want to update your accounting records or find yourself in one of the situations described above, feel free to turn to our evaluation services. <\/p>\n
FairValue has a strong team of experts in accounting, finance, fixed assets and intellectual property. The over 70 appraisers from all over the country, who make up the #fairvalueteam, are ready to promptly respond to any valuation request in the field of financial reporting, regardless of its complexity and the location of the assets in Romania.<\/p>\n
You can call with confidence, we guarantee their professionalism.<\/p>\n
A fair financial valuation helps companies make informed and effective decisions. FairValue offers you the expertise you need. Discover the benefits now!<\/p>","protected":false},"author":1,"featured_media":3126,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65],"tags":[],"class_list":["post-3125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"\n