Corporal immobilization reassessment accountancy and tax alternatives

• Author: Busuioceanu, S.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 147-154

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

CORPORAL IMMOBILIZATION

REASSESSMENT ACCOUNTANCY AND

TAX ALTERNATIVES

Steliana BUSUIOCEANU1

Abstract: The economic phenomena and process like the market evolution,

the inflation and globalization have also triggered in accountancy the

evolution from historical cost system to current cost. The corporal

immobilization reassessment at the level of current cost must represent the

real motivation to contribute to a truthful image of the patrimony and not a

method of depreciating tax costs of economic operators.

Key words: current cost, reassessment, accounting alternatives, tax

alternative, adjustments, corporal immobilizations.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

The attainment of a truthful image that is

useful to the decision making as finite

product of the accounting process brings

into close-up the objective assessment of

the financial situation elements. The issue

of assessment has been and is intensely

debated both in practice and in accounting

theory, having initially represented a

matter of cost rather than one of value. [7]

For a long time, the general rule has

consisted in the assessment, at the

historical cost, applied upon entering the

company patrimony, when the assets are

assessed and registered at the entry value

known as accounting value.

The economic phenomena and processes

that took place lately, like market

evolution, evolution of purchasing power,

inflation and globalization have also

triggered in accountancy the evolution

from historical cost system to current cost.

In fact, the current process of accountancy

globalization is mainly based on the

concept of current cost.

IASB gives the following definition for

current cost: “the cost at which an asset

may be operated or a debt may be deduced

between the interested and informed

parties, within an objectively conducted

operation”.

2. General aspects of corporal

immobilization reassessment

Order no. 3055/2009 offers a detailed

description of the methods by which

reassessment operations may be carried

out, the way results can be transposed into

accountancy and accounting notes. Hence,

entities can proceed with the reassessment

of the corporal immobilizations existing at

the end of the fiscal year, and this

reassessment will be made at the current

cost from the date of the balance sheet.

The current cost is determined based on

the certain assessment made usually by

professionals qualified to assess, members