INVENTORIES MEASUREMENT – BETWEEN PRUDENCE AND NONPRUDENCE
In accounting, measurement is the process used to determine the value at which the items of financial statements are recognized in accounting and presented in the balance sheet and in the profit and loss account. Starting from the importance of measurement in accounting, the first study object...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
Academica Brâncuşi
2010-12-01
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Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
Subjects: | |
Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2010-04.II/19_IULIA_JIANU.pdf |
Summary: | In accounting, measurement is the process
used to determine the value at which the
items of financial statements are recognized
in accounting and presented in the balance
sheet and in the profit and loss account.
Starting from the importance of measurement
in accounting, the first study objective in this
paper brings in the center of discussion the
inventories measurement with the purpose to
identify the main methods for inventories
measurement at exit used by the economic
entities listed on EuroNext Paris Exchange
Stock. In the present context, when the
financial crisis is still felt in the EU countries
is important to note the extent to which
economic entities demonstrate prudence in
accounting by taking into consideration the
inventories impairment at balance sheet date.
Compliance with the prudence principle to
integrate uncertainty in accounting
measurement has the purpose to avoid the
risk to transfer in the future periods the
present uncertainties that are likely to strike
the economic entity. One of the main
consequences of this principle is to make
impairments for inventories. Therefore the
second objective of the present paper is to
reflect the extent to which the entities under
study record impairments for inventories at
balance sheet date, as well as to highlight the
manner in which is disclosed the information
regarding the way the net realizable value
can be calculated. |
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ISSN: | 1844-7007 1844-7007 |