The use of fair value in accounting practice
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Fair value is a relatively new value measurement applied in accounting, more reliablethan historical cost when measuring balance-sheet items, especially financial instruments.However, determining the fair value of these assets in unstable economic conditionsproves to be an issue of particular significance. The article presents the fair valuecategory in the context of changes occurring in accounting valuation. The changes resultfrom shifting needs of accounting information users. In the practical section of the paper,the author concentrates on financial assets valuation on account of its significancein the context of the so called financial market crisis. The author indicates difficulties inits practical application, which arise from the very nature of this valuation method aswell as rules contained in legal regulations.
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