Proceedings of the 15th International Academic Conference, Rome

EVALUATING EQUITY IN FAIR VALUE ACCOUNTING

JOSIPA MRSA, JOSIP CICAK

Abstract:

This paper discusses the results of the research problem evaluating equity in accounting. In principle, equity is a differential value, the difference of assets and liabilities and its value is derived from these elements, for each individual component of which the fair value is determined. However, accounting recognizes methodologically different equity evaluation as well. In a business combination, fair value of units can be determined through the fair value of equity financial instruments, the result of which may significantly be different from the valuation of equity through value of assets and liabilities. Moreover the accounting standards specifically provide guidance on measuring the fair value of the equity financial instruments, the quoted ones as well as those not quoted.

Keywords: Fair value measurement of equity, equity instruments, fair value of equity in business combination, noncontrolling interest

DOI: 10.20472/IAC.2015.015.125

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