Evaluative indicators and their impact on the reliability of financial statement information
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Date
2023
Authors
Journal Title
Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The article discusses the theoretical and practical aspects of determining the impact of
evaluation indicators on the reliability of financial reporting. Valuation indicators are the
determination of the value of assets and liabilities in the current conditions of economic activity.
When preparing financial statements, in some cases it is inevitable not to accurately reflect the
events, but to take into account professional judgment and approximate estimation models based on
analytical reasoning and available information, in such conditions, the financial statements reflect
estimates formed due to probable uncertainty or lack of accurate estimation. Such values are called
estimates and are based on the approaches and concepts established in the conceptual foundations
of financial reporting. Despite the fact that due to objective circumstances, it is impossible to
develop an ideal financial statement corresponding to the conceptual foundations, it is still of crucial
importance to prepare it in such a way as to improve the quality of usefulness of financial statements.
The article discusses the basis of the generation of evaluative indicators and their impact on
the usefulness of general purpose financial statements. The work also presents issues regulated by
International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS),
which relate to the assessment and revaluation of reserves in own capital.
Description
1. Conceptual Foundations of Financial Reporting 2021. https://saras.gov.ge
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4. IAS 37- "Temporary Liabilities, Contingent Liabilities and Contingent Assets" 2021 https://saras.gov.ge
5. International Financial Reporting Standard (IFRS), 2021. https://saras.gov.ge
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(pp. 711-718
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Keywords
Citation
Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 227-232