Financial reporting involves providing useful and necessary information for decision-making within an economic entity. Inside and outside an enterprise there are a number of stakeholders who have different levels of power, influence and interest in the organization. They request information at regular intervals for the purpose of making various decisions. <\/p>\n
Financial reporting is the process of providing information to the company's stakeholders to make decisions, and financial statements are the result of the financial reporting process.<\/p>\n
The financial statements include the balance sheet, the profit and loss account, the cash flow statement and the directors' report. Depending on the size of the company, they are accompanied by explanatory notes, which contain more details about the company's economic performance and the accounting policies used.<\/p>\n
Until a few years ago, annual financial statements had an additional role, that of providing local tax authorities with the taxable value of buildings owned by the company. <\/p>\n
Starting with January 1, 2016, following the amendment of the Fiscal Code provisions regarding the taxation of buildings, the taxable value of buildings owned by companies was no longer taken from the financial statements submitted by them.<\/p>\n
Although the taxation of buildings is no longer based on book values, the Romanian Accounting Law and the International Financial Reporting Standards (IFRS) recommend the revaluation of assets and liabilities held by the company, in order to determine their fair value at the balance sheet date and to present a more current value of equity. The fair value is determined based on assessments carried out by authorized appraisers, according to the Asset Valuation Standards in force, assessments having as their purpose financial reporting (recording the fair value in the accounting records).<\/p>\n
A financial reporting assessment can be useful for any company, but especially for companies that meet the requirements for auditing financial statements and companies listed on the Stock Exchange.<\/p>\n
Valuations are required for various purposes in the preparation of companies' financial statements. Examples of such purposes are: determining the value of an asset or liability for recording it in the financial statements, allocating the purchase price of a business or real estate, testing for asset impairment, or classifying lease contracts. We will write more about these purposes soon.<\/p>\n
The following steps are taken in the evaluation process for financial reporting:<\/p>\n
\u00b7 Analysis of the list of assets or liabilities to be valued;<\/p>\n
\u00b7 Identification of specific elements required for the classification of assets or liabilities (if not already done);<\/p>\n
\u00b7 Establishing the premises of the evaluation;<\/p>\n
\u00b7 Analysis of auditor requirements;<\/p>\n
\u00b7 Discussions with company representatives and inspection of assets;<\/p>\n
\u00b7 Identifying and accessing certain public or private sources of information considered by the evaluator to be necessary for the preparation of the evaluation report;<\/p>\n
\u00b7 Communication of the estimated value and preparation of the actual evaluation report.<\/p>\n
Only a licensed appraiser can prepare the valuation for financial reporting. Licensed appraisers who can perform such valuations have different specializations: business and intangible asset appraisers (EI), movable property appraisers (EBM), real estate property appraisers (EPI).<\/p>\n
With over 17 years of experience in the field of valuations, FairValue has a strong team of experts in accounting, finance, fixed assets and intellectual property. The over 70 appraisers from across the country, who make up the #fairvalueteam, are authorized for all the specializations listed above, being ready to promptly respond to any valuation request in the field of financial reporting, regardless of its complexity and the location of the assets in Romania.<\/p>\n
You can call with confidence, we guarantee their professionalism.<\/p>\n
Understand the financial valuation process and its essential role. FairValue offers you clarity, precision and expertise in top valuations! Contact us now!<\/p>","protected":false},"author":1,"featured_media":3130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65],"tags":[],"class_list":["post-3129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/comments?post=3129"}],"version-history":[{"count":1,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3129\/revisions"}],"predecessor-version":[{"id":3990,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/posts\/3129\/revisions\/3990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/media\/3130"}],"wp:attachment":[{"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/media?parent=3129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/categories?post=3129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myfairvalue.happy-projects.ro\/en\/wp-json\/wp\/v2\/tags?post=3129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}