THE IMPORTANCE OF TANGIBLE FIXED-ASSETS REVALUATION: A COMPARISON BETWEEN ROMANIAN ACCOUNTING REGULATIONS AND THE IPSAS 17 ‘PROPERTY, PLANT AND EQUIPMENT’
Abstract
The purpose of a tangible fixed-assets revaluation is to establish true values for assets and a genuine picture of the financial position and the result of public institutions. This article presents the legislation needed to implement international provisions regarding the accounting system of public institutions, especially those concerning the revaluation of tangible fixed assets. It contains a comparison between the national regulations and guidelines of the International Public Sector Accounting Standard for tangible fixed assets. It highlights the convergences and divergences regarding the accounting treatment for determining the initial value of tangible fixed assets, the setting out of the reassessed value, the accounting treatment applied to the revaluation results, and the achievement of a revaluation surplus. It also describes the manner in which the revaluation of tangible fixed assets can influence the financial and patrimonial position of a public institutionReferences
Government Ordinance on the reassessment and amortization of tangible fixed-assets owned by the public institutions, no. 81, art. 9, 2003
Handbook of International Public Sector Accounting Pronouncements, Vol. I, International Federation of Accountants, 587, 2016
Order of the Minister of Economy and Finances approving the methodological norms on the reassessment and amortization of tangible fixed-assets owned by the public institutions, no. 3471, art. 3- 6, 2008
Order of the Minister of Public Financesfor the approval of the methodological norms regarding the organization and management of the bookkeeping department of public institutions, the plan of accounts for public institutions and its enforcement instructions, no. 1917, 2005
M Ristea , I Jianu I, I Jianu, The Romanian Experience in Applying the International Standards for Financial Reporting as well as the International Public Sector Accounting Standard, The Transylvanian Magazine for Administrative Sciences, 1, 169-192, 2010, from http://rtsa.ro/rtsa/index.php/rtsa/article/view/102/98
C Luca, Revaluation and Amortization of Fixed-assets, a Novelty in the Accounting Policies of the Ministry of National Defense Military Units, The Bulletin of the Carol I National Defense University, 4, 156-165, 2010, from https://www.ceeol.com/search/article-detail?id=126217
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