Who is afraid of the „fair value”?

Author:PhD. Alexandru RUSOVICI, PhD. Gheorghe RUSU

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Keywords:solutions, portfolio, spread, IAS, dynamic accounting

Abstract:
In the financial statements, presentation of the structures valued at the fair value has several reasoning.\r\nFirstly, it is the fact that the main users of the financial statements, especially of the consolidated ones, are the investors. In making the decision to invest, these consider and base their decision on the concept that the fair value is the market value, which, expresses, for sure and as close as possible to the true state, the value of a company, of its assets and its liabilities, the opinion of the financial markets expressing as fair as possible the current value of the future cash flows.\r\n\r\nThan, the bond marketing, especially of the shares and of those circulating in very different forms today, bonds issued by the listed companies, financial instruments sold and bought before their contractual maturity justify the use of a valuation method able to reflect as exact as possible the economic reality.\r\nIn the end, is worth to mention that the expression of these bonds in historical value does not creates in a constant manner the necessary conditions for comparing the companies performances which shares or obligations are listed on the stock exchange, while the performances presentation in the fair value facilitates the comparison and the assessments on the stock exchange trend profitability and validity.

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