engleski

Fair Value Measurement of Long-Term Tangible Assets: Existing Experience and Possible Challenges for Croatian Small Manufacturing Enterprises

Accounting standards contain important principles for recognition and measurement of the financial statements positions. Although there are various sets of financial reporting standards, in all of them it is possible to recognize the same or very similar rules of measurement and valuation of assets and liabilities. The cost model usually comes with the possibility of applying the fair value model. It is to be expected that asset valuation at a fair value model require disproportional administrative and financial burden for smaller enterprises since they often lack staffing or financial capacity to apply it. The purpose of this study is to explore whether there is a real practical need for applying the fair value model in the financial reporting of small Croatian enterprises. In order to analyze whether Croatian small manufacturing enterprises use the revaluation model as a method of measurement of long-term tangible assets after initial recognition, an empirical research has been taken. The main field of the research is related to recognition and measurement models, accounting estimates of the useful life of assets, depreciation methods, and rates used. Research results indicate that the majority of enterprises taken into research sample use the cost model for the measurement of intangible assets after initial recognition, while those that use the revaluation model use it mostly for the properties, while the other tangible assets measure at the cost model.

fair value ; long-term tangible assets ; small enterprises ; Croatia

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