Accounting treatments for the valuation of tangible fixed assets

Abstract

In order to be recorded in the current accounting and recognized in the annual financial statements, an immobilized asset, like any other asset of an entity, must be valued, determining through this process the values at which patrimonial asset structures will be recognized in the annual financial statements, assuming the choice of a particular assessment base. The evaluation is made taking into account the general evaluation rules, but also the main moments when this occurs. The valuation of fixed assets is intended: the initial valuation refers to the valuation at the entrance to the economic entity and is based on the cost, calculated on the basis of the supporting documents, the cost which acquires the status of entry value, as well as the subsequent assessment, which includes: post-expense, inventory valuation in the balance sheet, revaluation, and assessment at the exit from the entity. JEL: M 41