Značaj primene modela vrednovanja imovine srednjih preduzeća u Republici Srbiji

Thinking of the New Accounting Standard Systems on the Fair Value

PurposeThe valuation of property companies and fair value accounting for investment properties under IFRS are closely affiliated with each other. This is because property companies are commonly valued using net asset value as a valuation technique. The term net asset value represents the fair value of a property company's assets less its liabilities and therefore can easily be determined, as under IFRS investment property is often reported using a fair value approach. The purpose of this paper is to examine the perception of fair value estimates for many companies' main asset: investment properties. With this it contributes to the stream of real estate finance literature that investigates net asset value deviations from property companies' share prices and to the stream of accounting literature that investigates fair value accounting.Design/methodology/approachThe association between the net asset values of European listed property companies and their market prices are investigated. Observed deviations are related to a wide set of variables using panel (unbalanced) OLS‐regressions.FindingsIt is found that net asset value usually departs from the market capitalization of European property companies. It is also found that those deviations are a result of insufficient reliability of fair value estimates of investment properties because of the limitations of appraisals, the diversity of applied approaches in appraising investment properties and the reliability problem for mark‐to‐model approaches usually applied in determining the fair value of investment properties.Originality/valueThis parameter has not been considered before in previous literature.

Generally, the fair value of an asset is its sales price. For a non-financial asset, however, a fair value measurement is performed by identifying the highest value-in-use (IFRS 13, § 27; SFAS 157, § 12). This assessment includes the sales price obtainable by selling the asset to another market participant, who will use the asset in its highest and best use. Thus, the fair value of an operational asset is the highest value of the asset owner’s best use and the implicit sales price, which reflects the best external use. The expected fair value of an operational asset is shown to be the probability-weighted average of the expected values in use and for sale. There is also an expected value of the uncertainty caused by the requirement to switch reporting from the operational value to the sales value if the latter is higher or vice versa, corresponding to the time value of an option to exchange one asset use for another. Consequently, the expected fair value of an operational asset is higher than the maximum of the expected operational value and the expected sales price. The fair value changes as information arrives about the sales and operational values. As the precision of the information increases, the expected fair value approaches the highest of the expected operational and sales value, and the expected value of uncertainty falls to zero. When for example the measurement of the operational value is perfect, the expected fair value will be higher if the sales value remains uncertain.

The paper deals with the analysis on the innovative approaches in the accounting and audit of the book value of assets. The results of analyses proved that of the book value of assets in the accounting and audit, especially in the context of financial crises, implementation of the new or modified standard of accounting and reporting becomes an important part of the issues. Herewith, financial and management decision, which compare book and market value, trying to predict the future (fair) value of assets or even a company (firm). The main goal of the paper is analysed of the tendency in the scientific literature on the accounting and audit of the book value of assets to identify future research directions. For the analysis, the VOSviewer and Scopus tools were used. This study reviews 714 papers from the Scopus database. The time for analysis was all timeline of the Scopus database. The results showed the growing tendency in publishing the documents in the Scopus database focused on the accounting and audit of the book value of assets issues. It began to increase from 1997 to 1999, from 2007 to 2009, and from 2014 to 2017. Moreover, the focus of investigation moved from general issues to problem of the fair value of assets, implementation of modifying standards of reporting and accounting. In 2018, the number of documents increased by 1225% compared to 1997. It was the year with the biggest number of paper devoted to analysing the innovative approaches in the accounting and audit of the book value of assets. Mostly the innovative approaches in the accounting and audit of the book value of assets were analysed under the subject area as follows: Business, Management and Accounting; Economics, Econometrics and Finance; Social Sciences; Engineering. Besides, the biggest share of the scientists which investigated issues the innovative approaches in the accounting and audit of the book value of assets was from the USA, United Kingdom, Australia and China. In 2019 papers focused on analyses of the innovative approaches in the accounting and audit of the book value of assets were published in journals with high impact factor as follows: Contemporary Accounting Research, Accounting Review, International Journal of Accounting, Managerial Finance,Accounting And Business Research. Such results proved that theme on the innovative approaches in the accounting and audit of the book value of assets is actually in the ongoing trends of the modern accounting, finance, management and audit. The findings from VOSviewer identified 6 clusters of the papers which investigated innovative approaches in the accounting and audit of the book value of assets from the different points of views. The first most significant cluster merged the keywords as follows: accounting information, fair value, financial reporting, fair value accounting, firm value, intangible assets, intellectual capital etc. The second biggest cluster merged the keywords as follows: costs, cost accounting, accounting method, assets value, assets valuation, depreciation, cost-benefit analyse, balance sheet etc. The third biggest cluster focused on criminal aspects of value relevance, book value, the book value of equity, equity valuation, earnings, dividend etc. Such tendency allows making a conclusion, financial and management decision, which compare book and market value, trying to predict future (fair) value of assets or even a company (firm) are very close and popular in different issues. Keywords book value, asset value, accounting, financial accounting, audit, innovative approaches.

The concept of fair value, defined by the valuation of assets and liabilities at their current market worth, remains central to the International Financial Reporting Standards (IFRS) and has persisted despite critiques intensified by the 2008 financial crisis. This valuation method continues to be prevalent under both IFRS and the US Generally Accepted Accounting Principles (GAAP). The adoption of IFRS has notably enhanced the role of accounting in information analysis, vital for owners who prioritize both secure accounting practices and reliable data for strategic management decisions. Real estate, a significant business asset, has long been a focal point in accounting discussions, prompting extensive research into the applicability and effectiveness of various accounting standards. These investigations assess the adaptability of standards based on property type, utility, and valuation techniques. However, the challenge of accurately determining the fair value of real estate remains unresolved, signifying its importance not only in the corporate manufacturing realm but also among development companies striving to manage property values efficiently. This study addresses the challenge of accurately determining the fair market value of real estate in Kazakhstan, leveraging a multi-methodological approach that encompasses statistical models, regression analysis, data visualization, neural networks, and particularly, an Adaptive Neuro-Fuzzy Inference System (ANFIS). The integration of these diverse methodologies not only enhances the robustness of real estate valuation but also introduces new insights into effective asset management. The findings suggest that ANFIS provides superior precision in real estate pricing, demonstrating its potential as a valuable tool for strategic management and investment decision-making.

Indonesian Financial Accounting Standards (PSAK) confirm that asset assessment should be used fair value, therefore entities have to follow it from the previous application. Indonesian Financial Accounting Standard (PSAK) is a framework of accounting procedure to provide accounting financial statement which consist of standard of recording, preparation, treatment and providing financial statement. Valuation techniques used to measure fair value to maximize the use of observable relevant input and minimize the use of Unobservable relevant input. This study is using qualitative method which covert into quantitative by giving the weight value for the purpose of providing the preliminary understanding about implementation of fair value disclosure with valuation of asset from PT. Bank Permata Tbk. financial statement using primary data with collecting the data using interview and questionnaire. The overall result of fair value measurement of asset valuation from banking industry in PT. Bank Permata Tbk has been considered as appropriate, it is due to from the questionnaire 19 out of 20 questions were answered in accordance with the PSAK 68. Based on result of analysis, it is found that the question number 12 were not answered in accordance with PSAK 68 paragraph 74 with regards to the entities is prioritize the fair value hierarchy compare than the input, in other hand according to PSAK 68 paragraph 74 the priority should be the input than fair value hierarchy.

The signifcance of the evaluation of the logistical base of agricultural enterprises in the accounting system is revealed in the article. Research methods have been described and alternative approaches to inventory valuation by national and international accounting standards have been investigated, and it has been identifed that there are some inconsistencies in the formation of inventory values at the date of receipt, disposal and balance sheet date. The main features of organization of accounting of land plots in agricultural enterprises are established. To determine the value of the land previously used by the enterprise (for example, on certifcates of ownership and use), we propose to use in the current accounting the estimated value of the land, which is based on the regulatory monetary valuation, determined by differential rental income. It has been found that an integral part of a biological transformation is the assessment of changes in a biological asset, which includes measuring and controlling changes in quality (fat content, protein, fber strength, etc.) or quantity (breeding, weight, etc.). In the course of the research it is determined that the process of accounting and valuation of biological assets at fair value should include such steps as: defning biological assets as an object of accounting according to their classifcation; specifcation of biological assets by species, cultures, rocks and other defning features; active market research and price information and technical and economic information collection; selection of biological asset valuation methodology; the calculation of the fair value of biological assets in accordance with the methodology adopted. An examination of the IFRS 13 "Fair Value Measurement for the measurement of biological assets at fair value" has shown that it should be made from the perspective of all market participants and the market environment should be assigned to the entities themselves. This will take into account the differences that exist between them, as they differ not only in terms of quality but also in the types of economic activity. In order to improve the investment attractiveness of enterprises, it is advisable to evaluate agricultural organizations' land resources according to International Accounting Standards, which provide for fair value. Valuation of assets and liabilities at this cost will increase the transparency of the fnancial statements and the reliability of the information on the fnancial and economic activities of the entity. In addition, in the analysis of fnancial and economic activity of enterprises of the corporate sector of the agrarian economy, a real assessment of land resources will have a positive impact on the normative indicators of liquidity and fnancial stability, which is especially important in the conditions of fnancial crisis and growing need for investment. Key words: material base, resources, inventories, fxed assets, reproduction process, market value, fair price, land valuation, accounting efciency.

Acknowledgments. Foreword. Preface. Introduction: Standards of Value. 1 Common Standards and Premises of Value. Common Standards and Premises. Price, Value, and Cost. Defining a Standard of Value. Premises of Value. Common Standards of Value. Fair Market Value. Fair Value. Investment Value. Intrinsic Value. Book Value. Common Operational Premises Underlying the Standard of Value. Going Concern. Liquidation Value. Other Issues. Fair Value in Alternate Contexts. Fair Market Value in Alternate Contexts. Standards of Value in the International Context. Summary. 2 Fair Market Value in Estate and Gift Tax. Introduction. Common Definitions of Fair Market Value. History of Fair Market Value. Elements of Fair Market Value. Price at Which a Property Would Change Hands. Willing Buyer. Willing Seller. No Compulsion to Buy or Sell. Reasonable Knowledge of Relevant Facts. Common Discounts. Summary. 3 Fair Value in Shareholder Dissent and Oppression. Introduction. Fair Value. Early References to Fair Value. Fair Value as Defined by Various Authorities and Statutes. Dissentera s Rights. Overview and History. Growth in Popularity of the Appraisal Remedy. Context of Modern Appraisal Rights. Oppression Remedy. Development of Oppression Remedy. Alternative Remedies. Context of Oppression Remedy. Freeze-Outs and Squeeze-Oouts. Recognizing Oppression. Reasonable Expectations. Breach of Fiduciary Duty. Heavy-Handed and Arbitrary or Overbearing Conduct. Standard of Value in the 50 States. Breaking Down the Components of Fair Value. Before the Effectuation of the Corporate Action to Which the Shareholder Objects. Excluding Any Appreciation or Depreciation in Anticipation of the Corporate Action Unless Exclusion Would Be Inequitable. Current and Customary Valuation Techniques. Discounts and Premiums. Level of Value. Other Shareholder Level Discounts. Entity-Level Discounts. Control Premiums. Extraordinary Circumstances. Equitable Adjustments. Delawarea s Entire Fairness. Consideration of Wrongdoing in Calculating Fair Value. Discounts Used as an a Equitable Adjustmenta . Damage Claims. Fair Value and the Minority Shareholder. Summary. 4 Standards of Value in Divorce. Introduction. Marital Property: General Background and History. Identification of Marital Property and Separate Property. Relationship between Valuation and Identification of Intangible Assets. Appreciation on Separate Property. Premises and Standards of Value in Divorce. Premises of Value. Standards of Value. Premises of Value Revealed through the Valuation of Insurance Agencies. Concepts of Value under the Two Premises. Standards of Value in Divorce among the 50 States. Lack of Statutory Insight. Revealing Standard of Value through Case Law. Toward a Standard of Value Classification System. Value in Exchange. Goodwill. Lack of Control and Marketability Discounts under Value in Exchange. Buy-Sell Agreements under Value in Exchange. Value to the Holder. Goodwill. Shareholder Level Discounts under the Value to the Holder Premise. Buy-Sell Agreements under Value to the Holder. Summary. 5 Fair Value in Financial Reporting. Introduction. Fair Value in Financial Reporting: What Is It? History of Fair Value in U.S. Accounting Literature. Application of the Fair Value Standard to Business Combinations. Application of the Fair Value Standard to Asset Impairment Tests. Interpretation of Fair Value Compared to Other Standards of Value. Fair Value in Financial Reporting versus Fair Value in Dissentersa Rights Cases. Fair Value in Financial Reporting versus Investment Value. Fair Value in Financial Reporting versus Fair Market Value. Audit Issues. Summary. Sources of Information. Appendix A International Business Valuation Standards. Appendix B Fair Value in Dissent and Oppression Chart. Appendix C Standard of Value Divorce Chart .

The Graeber Companies, Inc. case illustrates the implications of the Fair Value Measurements Standard (FASB ASC 820 or IFRS 13) and the Fair Value Option for Financial Assets and Financial Liabilities (FASB ASC 825 or IAS 39) on the accounting and auditing issues regarding fair value accounting. Based on an actual company's experience, the case provides an application of the new standards on fair value measurement, which is one major achievement of the FASB/IASB convergence project. Graeber Companies, Inc. is a 100-year-old financial boutique firm that, through its wholly owned and partially owned subsidiaries, is engaged in financial service activities. One of Graeber's proprietary investments is an equity investment in Advisor Group, Inc. (AGI)—an early stage development company. Students evaluate AGI's financial performance and strategic activities, including operating losses, issuance of preferred stock and proposed acquisitions by another investor company relative to its materiality, and potential impairment of Graeber Companies' equity-owned investment. The case study requires a determination of materiality of the equity investment and introduces students to the different valuation techniques such as Discounted Cash Flow Analysis, Public Market Analysis, Precedent Transaction Analysis, and the waterfall schedule method. The usefulness of these methods is then analyzed in determining the fair value of an investment in the situation where there have been no recent market transactions. Through analysis of the financial statements, relevant footnotes, and obtaining/obtained fair market value using different valuation approaches, students make a recommendation on materiality and on the fairness of the Graeber Companies management conclusion that no impairment of its investment in Advisor Group has taken place.

As an outcome of financial innovation, transaction monetary assets have internal and natural relationship with the long-term equity investment. Equity is the part of the former, but the whole of the latter. This paper analyzes the differences between transaction monetary assets and long-term stock ownership from five aspects. The accounting method is different with the different investment purpose. In conclusion, it is found that accounting calculation is decided by the goal of investment in both transaction monetary assets and long-term stock ownership investment, so accounting calculation will be more accurate if the goal of investment is certain beforehand. KEYWORD: Equity; perspective; Transaction monetary assets; Long-term stock ownership investment International Conference on Social Science, Education Management and Sports Education (SSEMSE 2015) © 2015. The authors Published by Atlantis Press 1518 from distinct properties of assets. Transaction monetary assets are current asset; its liquidity ranks only next to monetary capital. Long-term stock ownership investment is non-current assets held for more than one year with many restrictive terms in dealing it. The former is a kind of financial assets, which is a flexible financial instrument. Its characteristics lies in strong ability of liquidity, speedy financing, public offer in secondary market, convenient measurement according to fair value, flexible and easy management. Impairment tests and allowance for assets depreciation reserves are not required. The measurement of changes in assets and income is realized by merely changing in fair value. Transaction monetary assets include different kinds of investments and a lot of family members in content. But the comparison in equity ingredients is made between them based on their different investments. As a result, it can show the active innovation of internet finance and market for stock allocation. Nowadays, with the rapid development of internet finance and communication technology, Transaction monetary assets are popular among a lot of investors for its flexibility, convenience and efficiency. Long-term stock ownership investment shows the traditional mode of ownership investment, which has a long investment cycle, single stable objective and positioning. In spite of market risk and industry life cycle, it regards investment as a long-term undertaking. From the perspective of assets classification, Long-term stock ownership investment belongs to non-current assets, capital equity investment and long-term investment assets. Its investment goal is to control the process of production, management, decision, and make significant influences on the invested entity. The objective of Long-term stock ownership investment can be divided into four kinds according to different contents: subsidiaries whose share holding ratio is more than 50%, joint ventures whose ratio is 50%, joint ventures whose ratio is above 20% (including) and below 50%(not included) and equity investment enterprise whose ratio is less than 20%. 3 DIFFERENT INITIAL MEASUREMENT AND TAX MANAGEMENT Different investment objective and asset nature determine the distinction in initial measurement and tax management. When obtained the Transaction monetary assets, the transaction fees of the obtained price should be processed as investment income. Because the transaction fees are regard as short-term profit. Cash dividend and interests declared when buying, for the nature of payment in advance, should accounted for as dividends receivable or interests receivable. When received as get back payment in advance, we should be accounted as bank deposit or other monetary capital-deposited investment fund. Because the Transaction monetary assets has quoted in open market, when obtained it should be measured by its fair value, accounted by its initial investment cost. The long-term quality of Long-term stock ownership investment determines that the related taxes of the obtained price should be counted in the initial cost no matter cost method or equity method is used. The cash dividends which declared but not yet issued, included in the payable price, should be accounted for as dividends receivable and accounted for as bank deposit directly, not for the cost of Longterm stock ownership investment when the actual payment is received,. Through cost accounting, Long-term stock ownership investment is merging the Long-term stock ownership investment and the cost should be counted in the initial cost of investment. In other words, whether or not the paid purchase cost equals to the deserved proportion according to the amount of their shares, it should be counted in the initial cost. On the equity method, the purchase cost which is initially paid should exceed fair proportion of Long-term stock ownership investment which is acceptable for the investee and initial investment is counted in investment cost. If the purchase cost which is initially paid is below the identifiable fair proportion of Long-term stock ownership investment in investee, the amount of shares in investee is counted in initial investment cost of Long-term stock ownership investment with the excessive part as a part of non-operating income. 4 DIFFERENT MEASUREMENT IN HOLDING PERIOD The dividends or profits, distributed by the invested entity while the Transaction monetary assets are held, should be counted in the account of dividends receivable or interest receivable. As investment income processing. At the end of accounting period, Transaction monetary assets are measured by fair value with asset impairment set aside. Yet the difference between fair value and the book balance of the debt to be restructured are handled as changes in the fair value of Transaction monetary assets. Its book value of assets and changes of profit and loss are adjusted by changing fair value profit and loss. In order to ensure that accounting record agrees with actual situation at the end of accounting period, the changes in fair value should be made timely for the book value of Transaction monetary assets may be above or below fair value. With the cost method of Long-term stock ownership investment, the accounting is not processed no matter how much profit or loss the

The purpose of this study was to determine the impact of revaluation of property, plant, and equipment on stock prices and the rate of return on stock in a manufacturing company. The manufacturing firms represented in the index LQ45 on the Indonesia Stock Exchange from January 2011 to December 2013 were included in the population. The data were examined using multiple regression and the descriptive approach. The information was acquired via data collecting, data processing, and statistical analysis from an annual financial report on the Indonesian stock exchange.  The main objective of the financial statement is to provide information about the financial position, performance, and the changes in the company's financial position that will be useful for economic decision-making. The findings of this study indicate that: 1) There is a relationship between the financial asset classes of property, plant, and equipment at fair value with reliability, 2) Reporting of fixed asset property, plant, and equipment at fair value biased and unreliable especially for SE (The difference between the change in the value of assets) and PPNINC (the increase of the value of property, plant, equipment company in period t), and 3) The fair value can explain the explanatory power which is quite significant to the stock price, exceeds that can be presented with the historical cost. The conclusion drawn from the findings is that asset reporting at fair value did not exhibit a reliable quality. This resulted from a discrepancy in the reporting of a growth in the value of property, plant, and equipment in some quarters and an exaggerated increase in the value of firm assets in certain periods. Additionally, changes in the value of property investment, plant, and equipment were recorded together with investor assessments and carried a reliability value.  

The establishment of controlling as a mechanism that will contribute to economic support in business decision-making processes and the organization of the management structure established by the top management in agricultural enterprises in the Republic of Serbia is extremely important. The essential improvement of business decisions in agricultural enterprises can be linked to the established controlling mechanisms, which was the focus of the authors of this study. In the study, a correlation analysis was performed, which points to the existence of significance at the level of p<0.05, between the size of the organization of the agricultural enterprise and the implementation of controlling. In addition, the authors strengthened the research from the aspect of realistic presentation of the analysis of the obtained business results of the observed large and medium-sized enterprises in relation to the introduced controlling mechanism. It was discovered that there is a different success in the obtained business results of agricultural companies that introduced controlling compared to those that did not introduce controlling in regular operations. The value of the obtained Pearson Chi-Square is 11.190a, as well as the fact that p<0.005, which means that we discovered that the introduced form of controlling significantly affects the operations of medium and large agricultural enterprises in the Republic of Serbia.

In particular, a number of concepts that underpin ISFRPS are not used in Ukraine. These include: the priority of the economic content of operations over their juridical form, the concept of future economic benefits and utility of potential. The differences in requirements to accounting and reporting preparation related a different classification of assets and liabilities, income and expenses, as well as the lack of requirements and practices for the application of some accounting methods adoptedin ISFRPS. In Ukraine, the process of reforming the accounting and financial reporting system in the public sector is under way. Taking into account the requirements of the international accounting standards for the public sector are being introduced the national provisions (standards) of accounting in the public sector (hereinafter referred to as "NP" (S) "APS"), which have been developed on the basis of international standards. The Ministry of Finance of Ukraine, by its latest order dated 15.11.17, number 943, approved "NP" (S) "APS" 136 "Biological Assets". The standard came into force on 01.01.18. There was no specialized national standardin the budget sector that would regulate the accounting in agricultural operations. The article deals with the actual problems of implementation of the national provision (standard) of accounting in the public sector 136 "Biological Assets". The essence of the concept of "biological assets" in various scientific and literary sources was investigated.In accordance with paragraph 4 of section І "NP" (S) "APS" 136, a biological asset is an animal or plant that, in the process of biological transformation, is capable of producing agricultural products and / or additional biological assets, andalsoin another way contributes to the economic benefits. For the purposes of accounting, biological assets, depending on the length of the production process and the period of receipt of agricultural products, are classified into two groups: long-term and current biological assets. The accounting of long-term biological assets used in non-agricultural activities (eg watch dogs, ornamental plants, etc.) is regulated by "NP" (S) "APS" 121 "Fixed assets". Also, fruiting plants related with agricultural activities, the peculiarities of accounting which are determined by other "NP" (S) "APS", should be accounted as part of fixed assets. Such plants include such perennial plantations as vineyards, gardens, plantations of berry crops and hops. It should also be taken into account that if a fruit plant produces fruits and its use in agricultural activities is planned in future accounting periods, then it is accountedas part of fixe dassets. The typical correspondence of subaccounts of accounting for the display of transactions with assets, capital and liabilities of budgetary funds and statet rust funds does not include correspondence related to biological assets. Consequently, budget institutions need to develop their own view on the reflection in the accounting of biological assets "NP" (S) "A 136 "Biological Assets" has introduced concerning the biological assets of agricultural and agricultural products, the model of valuation at fair value. Peculiarities of estimation of biological assets depending on their receipt were investigated; the main problems arising from the public sector entities during their assessment were highlighted, in particular, in aspects of determining the fair value of such assets, the main deficiencies of estimation at fair value are indicated. In the IFRS system, the valuation at fair value is one of the priorities. In the world practice, there are three possible approaches to the valuation of fair value: market, income, and expense. In the Ukrainian practice, the market approach is predominantly used. In the domestic practice of the account the peculiarities of the assessment of biological assets was formed taking into account the ways of receipt of biological assets, their classification and the date of evaluation in accordance with certain economic transactions in the course of the movement of these objects of accounting. Nowadays, most of budgetary institutions do not apply the innovations and record in accounting the posting of finished products according to the old method, that is, according to the planned cost, which leads to deformation of information in the financial reporting. Evaluate long-term, current and additional biological assets at initial recognition and at each reporting date. Agricultural products are valued only at initial recognition. The evaluation at fair value provides calculation the sales costs. Current biological assets and additional biological assets whose fair value can not reliably be determined at balance sheet date, can be recognized and displayed at cost of production, in addition to current biological plant production assets which are recognized and displayed as work in progress. Regarding the initial recognition of agricultural products (grain, milk, honey, litter, etc.), it should be reflected in the reporting period in which it was separated from the biological asset. After initial recognition, it is evaluated and reflected in accordance with "NP" (S) "APS"123 "Funds". According to the results of the research, the relevant conclusions are made. Evaluation is a rather complicated process, due to the informational needs of different groups of users, a large number of methods for determining the fair value of accounting objects. Taking into account all the above-mentioned aspects, budget institutions should, by choosing methods for determining the fair value of biological assets, independently determine the method for determining the value of biological assets and approve it in the order about the accounting policy.

The research exercise is to appraise fairness in fair valuation methodology from the perspective in accounting and finance through analysing the application of fair value method of costing in International Financial Reporting Standards (IFRS) and assessing the usefulness of fair value in improving investor and observer decisions. The research reviews theories and modern trends in the field of fair value and emphasizes the challenges and limitations facing its application. The research highlights the need for clear and specific standards to determine fair value and calls for further research in this area to enhance transparency and fairness in financial markets. Although many studies have shown that the use of fair value is limited due to the need for reliable estimates at a low cost, the International Accounting Standards Board (IASB) and other accounting standards boards have encouraged the use of fair value to improve the comparability and updating of financial information. One of the main findings is that fair value is still not widely used in the valuation of illiquid non-financial assets, in addition to the fact that IFRS standards encourage the use of fair value in the valuation of assets and liabilities.

This study investigates the application of fair value ac- counting in companies in Bosnia and Herzegovina. The study was conducted on a sample of 190 companies. The application of fair value accounting causes a lot of controversy related to the relevance and reliability of fair value information. It is believed that the extent to which fair value measurement is used reflects attitudes of financial statement preparers about the usefulness of this model at its best. The findings of this study sug- gest that most companies in Bosnia and Herzegovina do not have tendency to apply fair value accounting. It is found that half of the companies in the sample do not use fair value accounting at all. Almost half of the com- panies that use fair value accounting use it just because they own assets that require fair value measurement. Fair value accounting is much more used in financial and larger companies than in non-financial and smaller companies. Companies mostly use fair value accounting for the measurement of investment property. However, they use it for the measurement of intangible assets at a minimum. The findings also suggest that the application of fair value accounting increases the uncertainty in fi- nancial statements. The quality of fair value disclosures is very low. Numerous companies do not disclose infor- mation on fair value hierarchy and valuation techniques that were used for fair value measurement. Companies that disclose this information mostly use indirectly ob- servable inputs (Level 2) for fair value measurement and these create a lot of room for earnings management.