Hnatiuk А.А., Candidate of Economic Sciences, Associate Professor, Professor of the Department of Economics, Accounting and Finance, Rivne Institute of Higher Educational Institution “Open International University of Human Development “Ukraine”, Rivne, Ukraine

ORCIDID: 0000-0002-8743-1932

e-mail: alla1720@gmail.com

Dilemma of Changing the Assets Value

Abstract. Introduction. For efficient functioning, modern enterprises need flexible systems for evaluating and analyzing their activities. From the management’s point of view, it is very important to theoretically re-think the methods of accounting science and to develop special methods of research. In today’s economic conditions, the change in value, namely, the evaluation of assets, has not developed into a comprehensive methodological approach due to the lack of the proper methodological basis, the uncertainty of laws, functions and subjects of the research. The evaluation of assets remains the main task and condition for further development of accounting and for obtaining reliable information.

Purpose. In modern economic conditions, the change in the value of assets due to the evaluation has not developed into a comprehensive methodological approach because of the lack of the methodological basis, the uncertainty of laws, functions and subjects of the research. The evaluation of assets remains the main task and condition for further development of accounting and for obtaining reliable information. For a certain period of time, the estimation of an asset may be distorted due to the effect of the inflation factor. Prior to the introduction of national standards in Ukraine, an additional evaluation of fixed assets was carried out, which was called the indexation of the book value of fixed assets. The purpose of the indexation was not to prove the residual value of fixed assets to the size of the market, but only to increase it in order to reflect the results of depreciation the monetary unit. The method of re-evaluation means the definition of the re-evaluation index and increase or decrease of the initial value and depreciation of the asset with the simultaneous change in additional capital.

Conclusions. The article has analyzed the differences that arise during indexation and re-evaluation of fixed assets:

– indexation only increases the residual value of fixed assets and re-evaluation may both increase and reduce it;

– the indexation rate is calculated based on the officially established inflation index; the re-evaluation index is calculated independently as a ratio of the level of prices for specific objects of fixed assets at the balance date to the residual value of these objects by the same date;

– in case of indexation, the size of the indexed residual value is determined depending on the coefficient of indexation, and in case of re-evaluation, conversely, the revalued residual value is equated to fair and affects the size of the index.

Keywords: assessment; object of assessment; indexation; re-assessment; cost.

References:

1. Bethe J. (2000). Balansovedenie [Balance science]. Moscow: Bukhhalterskyj uchet [in Russ.].
2. Bilukha, M. P. (2000). Teoriia bukhhalters’koho obliku [Theory of accounting]. Kiev [in Ukrainian].
3. Butynets’, F. F. (2000). Teoriia bukhhalters’koho obliku [Theory of accounting] (2nd ed.). Zhytomyr: ZhITI [in Ukrainian].
4. Bradul, O. M. & Ukhova, I. M. (2018). Optimal Balance Sheet Structure as a Prerequisite to the Financial Stability of the Enterprise. Modern Economics, 12(2018), 12-20. DOI: https://doi.org/10.31521/modecon.V12(2018)-02.
5. Kyrejtsev, H. H. (1992). Funktsyy ucheta v mekhanyzme upravlenyia sel’skokhoziajstvennym proyzvodstvom [Accounting functions in the mechanism of agricultural production management]. Kiev: Yzdatel’stvo USKhA [in Russ.].
6. Kuzhel’nyj, M.V. & Linnyk, V. H. (2001). Teoriia bukhhalters’koho obliku [Theory of accounting]. Kiev: KNEU [in Ukrainian].
7. Lovins’ka, L. H. (2006). Otsinka v bukhhalters’komu obliku [Theory of accounting]. Kiev: KNEU [in Ukrainian].
8. Maliuha, N. M. (1998). Otsinka v bukhhalters’komu obliku: teoriia, praktyka, perspektyvy [Assessment in Accounting: Theory, Practice, Perspectives], Zhytomyr: ZhITI [in Ukrainian].
9. Naumchuk, O. A. (2005). Property, plant and equipment: accounting techniques and accounting policies (Abstract of Ph.D. Thesis). Global economy. Kyiv: Taras Shevchenko National University of Kyiv [in Ukrainian].
10. Nashkers’ka, H. V. (2008). Types of ratings and their use in the enterprise accounting system. Visnyk L’vivs’koho universytetu, 40, 176-181 [in Ukrainian].
11. Cabinet of Ministers of Ukraine (2000). Polozhennia (standart) bukhhalters’koho obliku 7 “Osnovni zasoby”. Retrieved from http://vvv.zakon.rada.gov.ua/tsgi-bin/lavs/main.tsgi?nreg=z0288-00 [in Ukrainian].
12. Bonem, M. (2008). Prymenenie MSFO [Application of IFRS], Al’pyna Moscow: Byznes Buks [in Russ.].
13. Rozenberh, M. Y. (1923). About correct balance accounting. Vestnyk schetovodstva, 3-4, 6-11 [in Russ.].
14. Sokolov, Ya. V. (1985). Ystoryia razvytyia bukhhalterskoho ucheta [History of accounting development]. Moscow: Fynansy y statystyka [in Russ.].
15. Sokolov, Ya. V. (2000). Osnovy teoryy bukhhalterskoho ucheta [Basics of accounting theory]. Moscow: Fynansy y statystyka [in Russ.].
16. Sokolov, Ya. V. (1991). Ocherky po ystoryy bukhhalters’koho ucheta [Essays on the history of accounting]. Moscow: Fynansy y statystyka [in Russ.].
17. Sukhareva, L. O. & Chmykhalo, L. V. (2001). Balansove uzahal’nennia informatsii: metodolohiia i metodyka [Balance information generalization: methodology and methodology]. Donetsk: Nord-komp’iuter [in Ukrainian].
18. Oleksiienko, L. P. & Shumejlo, O. Ya. (2002). Suchasnyj tlumachnyj slovnyk ukrains’koi movy [Modern Dictionary of Ukrainian]. Kyiv: Kobza [in Ukrainian].
19. Tkach, V. Y. & Tkach, M. V. (1991). Mezhdunarodnaia systema ucheta y otchetnosty [International accounting and reporting system]. Moscow: Fynansy y statystyka [in Russ.].
20. Khendryksen, E. S. & Van Breda, M. F. (2000). Teoryia bukhhalterskoho ucheta [Theory of accounting]. Moscow: Fynansy y statystyka [in Russ.].