Measurement of assets in financial statements of an industrial company

Abstract

Measurement of assets is a core issue of financial accounting and reporting today. International Accounting Standards Board (IASB) and national standard setters in particular countries deal with this issue. The main issue of the measurement in financial accounting is discussed at present: using the fair value measurement at a balance sheet day for tangible fixed assets. Such measurement of assets determines company's financial statement. The objective of this article is to point out the significant differences in the area of measurement of assets according to IAS 16 Property, plan and equipment in financial statements prepared under International Financial Reporting Standards (IFRS).