Valuation of long-term tangible property at real value


  • Martin Pernica
  • Helena Hanušová


Financial accountancy, historical price, market price, real value, usual price, valuation


Purpose: The purpose of the article is to discuss the valuation of assets at real value. The authors characterize the benefits of valuing assets at real value and explain the procedure for deriving the coefficient of the real price of tangible movable assets. Scientific aim: Main aim of this article is to define the specifics of the valuation of assets in the Czech financial accounting and to specify the positive and negative of the valuation of assets on a historical cost principle. Methods: Contribution use general scientific methods, especially analysis, synthesis, comparison, induction and deduction. Essential sources of information were professional publications and selected educational texts at the end of this contribution. Findings: Real value nesting take no risks burden „fast changes” depending on concrete situation in the marketplace; is sturdy against influence legislative state provisions and isn't loaded by localities changes in which happens evaluation of property. The same property will be through the real value represent the potential economic benefits for a company in a specific sector regardless in which state will the company conduct business or to set up a business and establish new branches. Valuation of fixed assets in accounting is a very complex thing. Need accurate information about the real value of asset, which as one of all of these options reflects its economic benefits for businesses; it is radical for all companies regardless of their size. Conclusions: Valuation of assets at real value creates a presumption for correct decisions about costly investments, helping companies adequately manage their costs and creates conditions for substantial savings. Firms using the valuation of tangible assets at real value have become an essential precondition for success.





Professional Paper