ACCOUNTING BASED ON THE HISTORICAL COST VERSUS ACCOUNTING BASED ON THE FAIR VALUE

Diana Brînză, Marcela Bengescu

Abstract


The accounting theory and practice has developed a wide range of possible approaches regarding measurement in accounting. Fair value versus historical cost issue has been and continues to be one of the most challenging problems in literature. Switching from an accounting based on historical costs to one based on fair value was classified as a conceptual revolution in accounting. In our article we shall present a comparative analysis of these two types of accounting in view of shaping the future accounting system.


Keywords


historical cost; fair value; accounting system; financial reporting; relevance

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References


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Copyright (c) 2016 DIANA BRÎNZĂ, MARCELA BENGESCU

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LUCRĂRI ȘTIINȚIFICE MANAGEMENT AGRICOL

ISSN print 1453-1410
ISSN online 2069-2307
(former ISSN 1453-1410, E-ISSN 2069-2307)

PUBLISHER: AGROPRINT Timisoara, Romania
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