Abstract:

In the context of assessing business quality as well as making numerous business decisions, the question of assessment and evaluation of the financial statements positions is of particular importance. Given the differences between the accounting regulations adapted to smaller enterprises at the international and national levels, it should be noted that the application of different valuation methods affects the structure and the level of the individual positions of the financial statements. Therefore, for the purpose of accounting harmonization and minimization of operating costs of small enterprises, it would be necessary to harmonize the rules for assessing the position of the financial statements in a manner to select those methods of valuation of assets and liabilities that are simpler to implement or require a minimum cost. Related to this, it is expected that the most significant simplification for smaller enterprises would be the preparation of the basic financial statements without obligation to disclose items at fair value. Smaller enterprises typically have neither the capacity nor the real need to measure the financial statements positions at fair value.