Financial instruments' revaluation in financial statements some issues for the financial management

摘要

Measurement in financial reporting is one of factors which determines the quality and reliability of presented information. There may be seen a conflict between the requirements for relevance and timeliness of measurement on one side and the reliability and conclusive evidence on the other side. However, it shall be stated that the important problem of measurement issues is the possibility of subjective manipulation with values, which is possible when using certain measurement bases. This paper deals with the impact of different approaches using for measurement of financial securities (historical costs measurement versus fair value measurement through equity or through profit) and their impact on key indicators, such as ROE and EPS upon revaluation process.