Models and methods of assets and liabilities valuation
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The article deals with the issue of assets and liabilities valuation. The aim of the articleis to present the concepts of assets and liabilities measurement in accounting, particularlyas set out in the Polish Accounting Act and IFRSs. The author describes methodsof assets and liabilities valuation used in accounting and compares the valuationmodels prescribed by the Polish Accounting Act and the IFRSs.Generally, there are four methods of assets and liabilities measurement and two basicvaluation models. The main methods of assets and liabilities measurement are:– historical cost method,– current cost method,– realizable value method,– present value method.The valuation models to be used according to the Polish Accounting Act and IFRSsare the historical cost model and the fair value model. The historical cost model of assetsand liabilities measurement is still given prominence in Polish accounting regulations.
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