Browsing by Author "Sabauri, L."
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Item The basics of measurement of financial reporting information(Ivane Javakhishvili Tbilisi State University Press, 2024) Sabauri, L.; Kvatashidze, N.; Chechelashvili, A.According to the conceptual basics of financial reporting, the elements of financial reporting are measured by two time-based measurement systems: Entry price and Exit price systems. The entry price is a “historic cost”. The exit price reflects the view of market participants in a particular period of measurement and is thus called “Current Value” . Current value has become synonymous with Fair value, since it is based on the exit price (the price that would have been obtained from the sale of an asset or the transfer of a paid liability) and not on the transaction price or entry price (the price that would have been paid when the assets were purchased or would have been obtained from taking a liability) Conceptually, the entry price and the exit price are different. While exit and entry prices may be identical in many situations, it is implied that the transaction price does not represent the fair value of assets and liabilities upon their initial recognition as measured under IFRS 13. The disadvantage of the initial value is considered to be that it does not reflect changes in value, except in the case when the changes are related to the depreciation of the asset, or the liability due to the changes becomes a loss. Up-to-date information on measurement of the elements of financial reporting can be obtained at current value, such as fair value, value in use, and fulfillment value.