—Paper discusses the issues of currently used valuation models in financial reporting systems. During last three decades there could be seen a visible trend of shifting from traditional historical costs accounting towards fair value accounting (or mark-to-market accounting respectively). The analytical part of this paper addresses the impact of studied valuation models on selected financial ratios with the purpose of identifying the most and the less sensitive ones on various valuation models.
—Financial reporting, revaluation models, financial analysis, IFRS, accounting harmonization.
J. Strouhal is with the Skoda Auto University Mladá Boleslav, Czech Republic (e-mail: firstname.lastname@example.org).
Cite: Jiří Strouhal, "Historical Costs or Fair Value in Accounting: Impact on Selected Financial Ratios," Journal of Economics, Business and Management vol. 3, no. 5, pp. 560-564, 2015.