Methodological Approaches to Evaluation and Revaluation of Fixed Assets in the Context of Implementing International Accounting Standards

2019;
: cc. 89 - 99
1
Bila Tserkva National Agrarian University, Ukraine
2
Lviv Polytechnic National University
3
Lviv Politechnic National University

It has been established that the issues of methodological nature are of key importance in ensuring the reproduction process of the elements of material and technical resources, among which the issues of applied significance should be emphasized, such as justification of criteria and indices which can be indicators of the reproduction process state; developing algorithm of the latter at its various stages; modeling reproduction processes at the enterprise. Considering the issues of developing objective criteria and indices for the evaluation of the reproduction process of the elements of material and technical resources at the agricultural enterprises, the first thing to be noted is an unresolved issue of fair value, which creates the situation wherein book value of fixed assets and other assets minimizes the investors’ possibilities to protect their interests. This is due to the fact that accounting in Ukraine serves for tax control rather than management and investment. Evaluation of fixed assets, being the components of material and technical resources (MTR), at fair value makes it possible to characterize the reproduction process objectively, define the property status of the economic entity more precisely. However, it distorts financial result. We believe that simultaneous use of several indices for fair value measurement may lead to different fair values of the fixed asset. An agricultural enterprise is obliged to analyze the reasons for inconsistencies in calculations and choose the most precise estimation of the fair value. Fair value of the assets must reflect variability of money flows, which are taken into consideration during price negotiation by independent, knowledgeable buyers and sellers interested in making such a deal. There is no unified approach due to the fact that most of the assets do not have market value, and their fair value estimated by the expert is conditional and fair only as of the estimation date. Nevertheless, fair value is necessary for the potential investors and indispensable to financial assets. Evaluation methods of fixed assets at their fair value require development, adjustment of evaluation model, which will make it possible to ensure equivalency of exchange between the independent parties on the active market.

1. Dmitruk E.F. (2002). Metodika vyyavleniya potentsialnyh konkurentnyh preimuschestv firmy s uchetom vneshney i vnutrenney sredy [Methods of revealing potential competitive strengths of the enterprise taking into consideration external and internal environment]. Marketing i marketingovyie issledovaniya v Rossii — Marketing and marketing research in Russia, 2, 15-20 [in Russian]

2. Berdnikova T.B. (2002) Analiz i diagnostika finansovo-hozyaystvennoy deyatelnosti predpriyatiya [Analysis and diagnostics of the enterprise financial and economic activity]. Moscow: INFRA-M [in Russian].

3. Karaseva I.M., Revyakina M.A. (2007). Finansovyy menedzhment [Financial management]. Y.P. Aniskina (Ed.). Moscow: Omega-L [in Russian].

4. Mezhdunarodnye standarty finansovoy otchetnosti [International accounting standards]. (2008). Moscow: AskeriASSA [in Russian].

5. Sokolov Y.V.(2005). Buhgalterskiy uchet v zarubezhnyh stranah [Accounting in foreign countries] Moscow: Prospekt Velbi [in Russian].

6. Osnovni zasoby: Polozhennia (standart) bukhhalterskoho obliku 7 [Fixed assets: Regulation (standard) of accounting 7]. (2000, April 27). Nakaz Ministerstva finansiv Ukrainy № 92 — The order of the Ministry of Finance of Ukraine № 92. Retrieved from http://zakon3.rada.gov.ua/laws/show/z0288-00 [in Ukrainian].

7. Metodychni rekomendatsii shchodo oblikovoi polityky pidpryiemstva [Methodological recommendations on the enterprise accounting policy]. (2013, June 27). Nakaz Ministerstva finansiv Ukrainy № 635 — The order of the Ministry of Finance of Ukraine № 635 Retrieved from http://buhgalter911.com/Res/Zakoni/MetodRek/metod_uchet_polit.aspx [in Ukrainian].

8. Metodychni rekomendatsii z bukhhalterskoho obliku osnovnykh zasobiv [Methodological recommendations on the enterprise accounting policy]. (2003, September 30). Nakaz Ministerstva finansiv Ukrainy № 561 — The order of the Ministry of Finance of Ukraine № 561. Retrieved from http://buhgalter911.com/Res/Zakoni/MetodRek/osnsredstva.aspx [in Ukrainian].

9. Zakon Ukrainy pro otsinku maina, mainovykh prav ta profesiinu otsinochnu diialnist v Ukraini [Law of Ukraine on appraisal of property, property rights and professional appraisal activity in Ukraine]. (2001, July 12). Vidomosti Verkhovnoi Rady Ukrainy — Bulletin of the Verkhovna Rada of Ukraine. Kyiv: Parlam. vyd-vo [in Ukrainian].

10. Endovitskiy D.A.. Mokshina K.N. (2013). Suschnost osnovnyh sredstv kak obyekta buhgalterskogo ucheta v kontekste problem ucheta kapitala [The essence of fixed assets as an object of accounting within the framework of the problems of capital accounting. International accounting] Mezhdunarodnyy bukhgalterskiy uchet — International accounting, 25(271), 31-38 [in Russian].

11. Podatkovyi kodeks Ukrainy [Tax Code of Ukraine] (2010, December 02). Retrieved from http://zakon3.rada.gov.ua/laws /show/2755-17 [in Ukrainian].

12. Zakon Ukrainy pro otsinku maina, mainovykh prav ta profesiinu otsinochnu diialnist v Ukraini [Law of Ukraine on appraisal of property, property rights and professional appraisal activity in Ukraine]. (2001, July 12). Vidomosti Verkhovnoi Rady Ukrainy — Bulletin of the Verkhovna Rada of Ukraine. Kyiv: Parlam. vyd-vo [in Ukrainian].

13. Osnovni zasoby: Mizhnarodnyi standart bukhhalterskoho obliku 16 [Property, Plant and Equipment: International Accounting Standard 16]. (2012). Retrieved from https://zakon.rada.gov.ua/laws/show/929_014 [in Ukrainian].

14. Oblikovi polityky, zminy v oblikovykh otsinkakh ta pomylky: Mizhnarodnyi standart bukhhalterskoho obliku 8 [Accounting policies, changes in accounting valuations and mistakes: International Accounting Standard 8]. (2012). Retrieved from https://zakon.rada.gov.ua/laws/show/929_020#n2

15. Obiednannia pidpryiemstv: Polozhennia (standart) bukhhalterskoho obliku 19 [Business combinations: Accounting Regulation (Standard) 19]. (1999, July 07). Nakaz Ministerstva finansiv Ukrainy № 163 — The order of the Ministry of Finance of Ukraine № 163. Retrieved from: https://zakon.help/law/163/. https://doi.org/10.1038/sj.jp.7200178

16. Popovych V.I. (2012). Oblik osnovnykh zasobiv: porivnialnyi analiz MSBO ta P(S)BO. Fixed assets accounting: comparative analysis of IAS and Accounting Regulations (Standards). Visnyk Natsionalnoho universytetu “Lvivska politekhnika” — Bulletin of Lviv Polytechnic National University, 721, 216-219.

17. Vankevich. V.E. (2005). Sovershenstvovaniye pereotsenki osnovnikh sredstv i metodiki eye ucheta [Developing fixed assets revaluation and procedure for its accounting]. Finansy. Uchet. Audit. — Finance. Accounting. Audit, 5, 40-45.

18. Efimova. O. (2004). Sovershenstvovaniye mekhanizma otsenki i ucheta vosstanovitelnoy stoimosti obyektov osnovnykh sredstv. [Improving the mechanism of evaluation and accounting of replacement cost value of the objects of fixed assets]. Natsionalnyy bukhgalterskiy uchet — National Accounting, 12, 42-50.

19. Finansova zvitnist v umovakh hiperinfliatsii: Mizhnarodnyi standart bukhhalterskoho obliku 29 [Financial reporting in hyperinflationary economies: International Accounting standard 29]. (2012). Retrieved from https://zakon0.rada.gov.ua/laws/show/929_048.

20. Zmenshennia korysnosti aktyviv: Mizhnarodnyi standart bukhhalterskoho obliku 36 [Impairment of assets: International Financial Reporting Standard 36]. (2012). Retrived from https://zakon.rada.gov.ua/laws/show/929_047.