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Analyzing the Results of Accounting Evaluation Methods Through Practical Applications

Received: 6 July 2020     Accepted: 25 July 2020     Published: 20 August 2020
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Abstract

Even though different types of accounting evaluation approaches have been discussed in this article, mainly the income-based approach to business evaluation, asset-based approach to business evaluation and practical case evaluation have been analyzed. This article presents the principles of assessment of accounting items as active, external sources and equity and how financial performance is reflected. An important detail in this part of the project is the method of approach in assessing the direct reference to the main base for determining the elements of external sources and equity. In this analysis I have left the rules in the International Accounting Standard Board (IASBF) Framework, which provides tax assessment: historical cost, current cost, realizable value (settlement) and the present value as far as external sources are concerned such as stocks, bonds, and others. Fair value should be added as the basis for evaluation, even if not expressly provided for the general, is often used to IFRS as a basis for evaluating several external sources. I believe that this assessment is not at a crossroads about the theoretical and practical evaluation of most elements of external sources at fair value, including all sources from ordinary activities, which are recognized in the accounts at fair value.

Published in European Business & Management (Volume 6, Issue 4)
DOI 10.11648/j.ebm.20200604.14
Page(s) 95-104
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Evaluation, Revaluation, Historical Value, Fair Value, Financial Statements, IFRS, Accounting Regulation

References
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[3] Chasan, E. (2009), Auditor "going concern" warnings seen peaking in '09. Reuters.
[4] Choi, J. S.; Nam, J. A. (2019), Does managerial discretion affect the value relevance of good will impairment information under IFRS? Korean evidence, Asia-Pacific Journal of Accounting & Economics. Year 2020, Vol. 27, No. 1, 1–3, pp. 1-23, ISSN: 1608-1625 (Print), 2164-2257 (Online).
[5] Epstein, B. J.; Jermakowicz, E. K. (2007), Interpretation and Application of International Financial Reporting Standards. John Wiley & Sons, ISBN 9780471798231.
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[10] Miciula, I.; Kadlubek, M.; Stepien, P.; Gautier, A. (1976), Modern Methods of Business Valuation—Case Study and New Concepts, Sustainability MDPI, Year 2020, Vol. 12, No. 2699, pp. 1-22.
[11] Pratt, J. W.; Kulsrud, W. N. (2010), Federal Taxation, ch. 9. Ed., ISBN 978-1424069866.
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[13] Stickney, C. P.; Weil, R. L.; Schipper, K.. (2012), Financial Accounting: An Introduction to Concepts, Methods and Uses, Chapter 9, ISBN 13: 978-0-324-65114-0, ISBN-10: 0-324-65114-7.
[14] Visconti, R. M.; (2019), The Valuation of Intangible Assets: An Introduction. SSRN Papers: https://ssrn.com/abstract=3413524,Posted: 6Jul2019, 33pages.
[15] Williams, J. R.; Haka, S. F.; Bettner, M. S.; Carcello, J. V. (2006), Financial Accounting, 12th ed., Mass: McGraw-Hill/Irwin, ISBN0072884673.
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[17] Wolk, H., I.; Dodd, J. L. (2016), Accounting Theory: Conceptual Issues in a Political and Economic Environment, 6th ed. South-Western, ISBN0-324-18623-1.
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    Ibrahim Mert. (2020). Analyzing the Results of Accounting Evaluation Methods Through Practical Applications. European Business & Management, 6(4), 95-104. https://doi.org/10.11648/j.ebm.20200604.14

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    Ibrahim Mert. Analyzing the Results of Accounting Evaluation Methods Through Practical Applications. Eur. Bus. Manag. 2020, 6(4), 95-104. doi: 10.11648/j.ebm.20200604.14

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    Ibrahim Mert. Analyzing the Results of Accounting Evaluation Methods Through Practical Applications. Eur Bus Manag. 2020;6(4):95-104. doi: 10.11648/j.ebm.20200604.14

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  • @article{10.11648/j.ebm.20200604.14,
      author = {Ibrahim Mert},
      title = {Analyzing the Results of Accounting Evaluation Methods Through Practical Applications},
      journal = {European Business & Management},
      volume = {6},
      number = {4},
      pages = {95-104},
      doi = {10.11648/j.ebm.20200604.14},
      url = {https://doi.org/10.11648/j.ebm.20200604.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20200604.14},
      abstract = {Even though different types of accounting evaluation approaches have been discussed in this article, mainly the income-based approach to business evaluation, asset-based approach to business evaluation and practical case evaluation have been analyzed. This article presents the principles of assessment of accounting items as active, external sources and equity and how financial performance is reflected. An important detail in this part of the project is the method of approach in assessing the direct reference to the main base for determining the elements of external sources and equity. In this analysis I have left the rules in the International Accounting Standard Board (IASBF) Framework, which provides tax assessment: historical cost, current cost, realizable value (settlement) and the present value as far as external sources are concerned such as stocks, bonds, and others. Fair value should be added as the basis for evaluation, even if not expressly provided for the general, is often used to IFRS as a basis for evaluating several external sources. I believe that this assessment is not at a crossroads about the theoretical and practical evaluation of most elements of external sources at fair value, including all sources from ordinary activities, which are recognized in the accounts at fair value.},
     year = {2020}
    }
    

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    AB  - Even though different types of accounting evaluation approaches have been discussed in this article, mainly the income-based approach to business evaluation, asset-based approach to business evaluation and practical case evaluation have been analyzed. This article presents the principles of assessment of accounting items as active, external sources and equity and how financial performance is reflected. An important detail in this part of the project is the method of approach in assessing the direct reference to the main base for determining the elements of external sources and equity. In this analysis I have left the rules in the International Accounting Standard Board (IASBF) Framework, which provides tax assessment: historical cost, current cost, realizable value (settlement) and the present value as far as external sources are concerned such as stocks, bonds, and others. Fair value should be added as the basis for evaluation, even if not expressly provided for the general, is often used to IFRS as a basis for evaluating several external sources. I believe that this assessment is not at a crossroads about the theoretical and practical evaluation of most elements of external sources at fair value, including all sources from ordinary activities, which are recognized in the accounts at fair value.
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Author Information
  • Business Administration, Istanbul Aydin University, Istanbul, Turkey

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