The measurement and evaluation of elements of statement of financial position based on the improved NAS principles

AuthorAnila Musaj - Ledia Canga - Jerin Musaj
PositionFinance and Accounting Department, Faculty of Economy, ?'AleksanderXhuvani University'' Elbasan,Albania. - Master of Science Student in Finance and Accounting, University of New York in Tirana, Tirana, Albania. - Master of Science Student in Finance and Accounting, University of New York in Tirana, Tirana, Albania.
Pages107-113
ISSN 2410-759X Balkan Journal of Interdisciplinary Research Special Issue No 1
Acces online at www.iipccl.org IIPCCL Publishing, Tirana-Albania June 2015
107
e measurement and evaluation of elements of statement of nancial
position based on the improved NAS principles
Anila MUSAJ
Finance and Accounting Department, Faculty of Economy,
‘’AleksanderXhuvani University’’ Elbasan,Albania.
Ledia CANGA
Master of Science Student in Finance and Accounting,
University of New York in Tirana, Tirana, Albania.
Jerin MUSAJ
Master of Science Student in Finance and Accounting,
University of New York in Tirana, Tirana, Albania.
Abstract
In order to ensure high-quality nancial reporting, accountants present nancial statements in
conformity with accounting standards that are issued by standard-setting bodies. Presently there
are two primary accounting setting-bodies- International Financial Reporting Standards (IFRS)
and National Accounting Standards (NAS) that dier in some evaluation methods of elements
of nancial position. e aim of this paper is to analyze the importance and values that dierent
methods of evaluation have, in order to achieve fairly nancial reports in accordance with accepted
basic principles of IFRS and NAS. What changes provide NAS ? How are these changes compared
with IFRS ? And what are the consequences in current assets as it can be the methods of evaluation
of Inventory, Accounts Receivable or either Current Liabilities? It is important to measure the
qualities of nancial reporting to complete a good administration, because nancial information
should express not only accurate values in nancial reports, but also it should provide details
regarding the dierence between values. is is needed to have statements honestly prepared,
reliable, understandable, comparative and relevant, in order to be helpful for management
decisions, investors and also for creditors. is identication includes measurement base such as,
historical cost, fair value, actual cost, and net realized value, value in use and absent value.
Keywords: Accounting, International Financial Reporting Standards, National Accounting Standards
Evaluation Methods.
Introduction
Measure is the process of dening the monetary value, in which the nancial statements’
elements will be recognized on the Balance Sheet and Income Statement. is includes
the selection of a particular evaluation base.
Evaluation Bases include:
• Historical Cost
• Actual Cost

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