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Valuation Models. Fair Value – Methods Of Assessment In Accounting

Author

Listed:
  • Mihai Ristea

    (Academy of Economic Studies, Bucharest, Romania)

  • Corina Ioanăș

    (Academy of Economic Studies, Bucharest, Romania)

  • Mihaela Gruiescu

    (Romanian-American University, Bucharest, Romania)

  • Anca Tuțu

    (Academy of Economic Studies, Bucharest, Romania)

Abstract

In this paper the issue of valuation is analyzed as the main tool in shaping accounting and preparing financial statements. Starting from the “classical” models of assessment, based on historical cost, focus is made on accounting valuation, which is based on fair value. The diversity of accounting values demonstrates the need for rules and accounting policies on accounting valuation. The referential in this regard should be sought in the fair value. All other values are variations of the fair value, their difference being determined by time and space. The following question arises: do we evaluate at historical cost or fair value? This is the question we will try to find the answer to with this paper.

Suggested Citation

  • Mihai Ristea & Corina Ioanăș & Mihaela Gruiescu & Anca Tuțu, 2016. "Valuation Models. Fair Value – Methods Of Assessment In Accounting," Romanian Economic Business Review, Romanian-American University, vol. 10(2), pages 311-326, December.
    • Handle: RePEc:rau:journl:v:10:y:2016:i:2:p:311-326
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    File URL: http://www.rebe.rau.ro/RePEc/rau/jisomg/WI16/JISOM-WI16-A04.pdf
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    References listed on IDEAS

    as
    1. Barth, Mary E. & Landsman, Wayne R. & Wahlen, James M., 1995. "Fair value accounting: Effects on banks' earnings volatility, regulatory capital, and value of contractual cash flows," Journal of Banking & Finance, Elsevier, vol. 19(3-4), pages 577-605, June.
    2. Eccher, Elizabeth A. & Ramesh, K. & Thiagarajan, S. Ramu, 1996. "Fair value disclosures by bank holding companies," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 79-117, October.
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