Types of asset valuation in accordance with FAS 6/2020 «Fixed assets»: novations or traditions

Abstract

Importance: Evaluation of fixed assets in accordance with the requirements FAS 6/2020 «Fixed Assets». Purpose: Analysis of valuations of fixed assets introduced by FAS 6/2020 «Fixed Assets» to identify the degree of their novelty and features of formation for Russian practice. Research design: The article analyzes the estimates that are introduced in connection with the mandatory use of the FAS 6/2020 «Fixed Assets». The provisions of the regulatory documents and recommendations of the Fund «NRA AMC» regarding the estimating of objects before the transition to the requirements of this standard allowed to use some «new» valuations, including liquidation and carrying amount, as well as an instrument such as impairment, prior to introduction of FAS 6/2020 «Fixed Assets». The study is based, first of all, on the requirements of the provisions of regulatory documents, including those in force before the introduction into practice of the FAS 6/2020 «Fixed Assets». Results: the study of the totality of valuations of fixed assets made it possible to assert that the number of estimates that were introduced in connection with the transition to FAS 6/2020 «Fixed Assets», is markedly less than the number of estimates that were used previously. This fact does not mean a simplification of the valuation of objects in connection with the emergence of the need to use fair value, as well as with the obligation to determine the liquidation value. Relatively new for Russian practice is only fair value valuation. Determining fair value can be difficult for organizations that do not have experience under International Financial Reporting Standards.