ÚČETNÍ OCEŇOVÁNÍ V PODMÍNKÁCH FINANČNÍ KRIZE
| Title in English | VALUATION IN ACCOUNTING IN THE CONDITIONS OF FINANCIAL CRISES |
|---|---|
| Authors | |
| Year of publication | 2009 |
| Type | Article in Proceedings |
| Conference | Evropské finanční systémy 2009 |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | financial crisis; financial instruments; historical cost; fair value; market price |
| Description | This paper is devoted to the method of valuation of assets and liabilities at fair value and its impact on the current financial crisis. Unlike traditional cost brought about the possibility of fair value reporting of unrealized income (profits) based on changes in market prices. At the time when there is a downturn in financial markets need institutions that hold financial instruments at fair value revaluation reported a loss from operations in the case of more market volatility can be threatened with their existence. Request an obligation to stop reporting changes in fair value made through the income statement over a period of crisis is not an option, but only the postponement of problems in management. It is necessary to assess the risks of this method of measurement and apply appropriate accounting tools ti eliminate the risks in the highly unstable market conditions. |