Revarolization of permanent property and its implications on business result

Abstract

The model of additional estimation of permanent property based on fair value provides many possibilities for abuse with the aim to report a financial position which is significantly different from the genuine one. This issue is even more important taking into account the importance of permanent property in the structure of assets of large and medium-sized legal entities where the effects of abuse are particularly obvious. The aim of this paper is to provide an insight into this issue. Detecting the techniques of creative accounting and the technique of aggressive revalorization of permanent property in particular by forensics, auditors, state authorities and others in order to prevent the processing of such practice is considered significant having in mind the damage resulting from evading income tax and reporting fake financial situation.

Keywords

• fair value
• permanent property
• abuse
• aggressive accounting