The Problems of Investment Property Valuation According to National and International Accounting Standards

Abstract

The current stage of development of domestic accounting needs a lot of attention, since there is a maximum approximation of national provisions to international. Particular attention is required to account for investment property as a specific non-current asset. The purpose of this article is to disclose information about the valuation of investment property and to discontinue the application of the fair value model, the accounting for the cost of property, plant and equipment, leased together with investment property, the independent valuation of investment property, and the accounting and financial reporting data about investment property. According to the results of the study, there was a discrepancy between Accounting standard 32 and IAS 40 and recommendations were made for the further application of this or that model of investment property valuation, which will help to accurately reflect the data in the registers of accounting and financial reporting.

Keywords

• investment property
• valuation
• accounting
• fair value
• financial statements