ESTIMATION OF THE BALANCE-SHEET ELEMENTS – ESSENTIAL REQUIREMENT IN ASSURING THE REAL IMAGE OF THE ENTERPRISE PATRIMONY
ESTIMATION OF THE BALANCE-SHEET ELEMENTS – ESSENTIAL REQUIREMENT IN ASSURING THE REAL IMAGE OF THE ENTERPRISE PATRIMONY

Summary/Abstract: Towards the last decades of the 20th century there had been a considerable increase in the social role of accountancy, owing to the fact that the information it furnished influenced more and more the behavior of its users in the process of decision-making. Therefore, as a current accountancy final product, the financial reports represent the main source of information for a large range of users. They indicate the financial status and performance of an enterprise, so as to evaluate its capacity to furnish both cash and cash equivalents. All these financial statements are quantified by value, based on the principles and methods of valuation. The historical cost, prudence, the principle of stability for monetary unity and the on going nature of the operational activity provide the frame of valuation in the field of accountancy. Following the attributes awarded to accountancy and the principles which are associated to it, literature states the idea that accountancy information is a compromise which should allow for the presentation of faithful images of assets, debts, financial position and enterprise performance, correct and honest accounts. At the same time, it needs to respect a series of principles, among which those of valuation, monetary nominalism and prudence. All these have a determinant influence on the conception of ‘faithful’/real image.

• Details
• Contents