• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
JOEBM 2015 Vol.3(5): 560-564 ISSN: 2301-3567
DOI: 10.7763/JOEBM.2015.V3.246

Historical Costs or Fair Value in Accounting: Impact on Selected Financial Ratios

Jiří Strouhal

Abstract—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.

Index Terms—Financial reporting, revaluation models, financial analysis, IFRS, accounting harmonization.

J. Strouhal is with the Skoda Auto University Mladá Boleslav, Czech Republic (e-mail: ystrouhal@is.savs.cz).


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.

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