Evaluation of fixed assets of electric power enterprises-operators of the distribution system under the conditions of the post-war reconstruction of Ukraine

Abstract

The article is devoted to the assessment of the fixed assets of electric power companies-operators of the distribution system under the conditions of the post-war reconstruction of Ukraine. Attention is focused on areas of criticism of the concept of historical costs. Considerable attention has been paid to the advantages and disadvantages of the approaches of researchers to fair value asset valuations and cost asset valuations. The advantages and disadvantages of using fair value when making management decisions are highlighted. The sectoral features of the assessment were considered for the purpose of forming investment projects in the renewal of fixed assets of electric power enterprises-operators of the distribution system and the development of the distribution system. The majority of electric power enterprises-operators of the distribution system choose a revaluation model for classes of fixed assets and carry out revaluations of fixed assets. The algorithm for determining the asset valuation base with the aim of transitioning to stimulating regulation (RAB-regulation) was studied. It was found that the basis of asset valuation can be the market value or the residual value of replacement (reproduction). The expediency of applying the concept of asset impairment assessment in electric power enterprises-operators of the distribution system has been established. A method of testing for the reduction of utility of fixed assets of electric power companies-operators of the distribution system is proposed, with the help of which internal users will make decisions regarding their further safe operation and the need to find sources of investment in the restoration of distribution networks.

Keywords

• evaluation of fixed assets
• valuation based on historical costs
• fair value
• impairment of assets