| Abstract [eng] |
KRAKAUSKAITĖ, Erika. (2011) Fair Value Measurement in Accounting. MBA Graduation Paper. Kaunas: Kaunas Faculty of Humanities, Vilnius University. 54 p. SUMMARY The fair value concept is a step forward, allowing the existence of market transactions, based on latest information and risk management. The use of fair value method is an opportunity to determine the value of concrete financial statements correctly. However, the application of this method, by it’s complex essence, plenty and complexity of assessment methods and theories raises questions for financial statements preparers and users of this information. Given the recent economic situation and changes in financial markets, it is easy to understand that value of many financial statements in pre-crisis period differs from it’s value now. The global financial crisis and exploded bubbles of real estate and financial markets, forced financial statements preparers to use a true and fair value measurement methods and techniques, and financial reporting information users to place new priorities while making even the daily operational and management decisions. In the first part is theoretically revealed the concept of fair value method, highlighting key factors that determine the fair value. There was compared fair value evaluation method to the method, that is based on the historical cost. Also there were defined fair value theories, variuos evaluation techniques and approaches. In the second part there was assessed the principle of fair value in IFRS. There was estimated that the presentation of the fair value of the principle directly applied in 11 standards, indirectly in 9 standards. After the analysis of fair value presentation in IFRS there was determined that while evaluating and registrating statements, which are generally sensitive to the market situation and changes in market prices, this approach is inevitable. After the analysis of fair value measurement theories, key aspects and combined them into a common whole and after establishing links between, the fair value model was developed. There was made the verification of fair value model of Lithuanian corporations. It revealed that the concept of fair value disclosures in the financial reports of Lithuanian corporations are not very high, and its meaning is contrary to the specificities of the period considered. In the absence of previous studies of this nature, the results of analysis, regardless of their numbers are important because they show how much the fair value method and fair value model is developed, absorbed and disclosed in the financial statements of Lithuanian coporations. |
