Economic and Accounting Methods of Fixed Assets Evaluation

The aim of the article is to define and disclosure differences between economic and accounting approaches to evaluation of fixed assets. The existing methods for evaluation fixed assets were analyzed, and their relationship with the contents of accounting was disclosed. The place of evaluation in the accounting of a legal entity is determined. The factors influencing the evaluation of assets and liabilities were identified. There were systematized all evaluation types of fixed assets. The methods of evaluation of fixed assets were grounded depending on how they were received. It is determined that from an economic standpoint any existing evaluation methods can be used for the evaluation of non-current assets depending on the aim and circumstances. However, display of results of economic reappraisal and utility changes on bookkeeping accounts is contrary to the content of bookkeeping and will lead to the distortion of accounting results. It is proved that non-current assets on bookkeeping accounts shall be displayed at depreciated historical cost.