Tangible assets reevaluation from the accounting and taxation point of view

Author:Professor, PhD. Constantin STAICU, Professor, PhD. Magdalena MIHAI

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Keywords:credibility, information, fair value, amortization, fiscal context, reserve treatment

Abstract:
From the relatively complex problems related to the tangible assets revaluation we would try to point out, in a succinct manner, only those considered to be significant in connection with the implication of this process on the quality of the financial information. For this purpose, we argue the necessity of making regular revaluation and we point out the effects generated by it, in relation to the legal ways for treatment of the amortization on paper. \r\n\r\nHowever, still in the context of revaluation, it is approached the issue of amortization from the \r\ntaxation point of view, both during the use of the tangible assets by the respective economic entity, but also after they are not part of the net worth.\r\n\r\nAt the same time, a special attention is paid to the differences in value, usually in plus, but also in minus, as the case may be, resulting from the analyzed operation, reflected in the accounting records as "Reserves from revaluation process" that imposes a special exigencies especially from the point of view of the allowed (legal) diminishing and of capitalizing those representing an effective realized gain.

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