Asset value of enterprises as a basic component of economic relations

Iuliia Kalynichenko


Introduction. The scale of the current financial crisis is a clear indication of the inefficiency of the vast majority of implemented economic decisions based on traditional principles and paradigms. The basic component of economic relations is the value of assets. International Financial Reporting Standards require that assets be measured at fair value, which is the carrying amount.

According to International Financial Reporting Standards, there is a four-level fair value hierarchy that gives higher priority to market contributions to value measurement, and the minimum priority is given to data determined by the enterprise itself based on its assumptions and considerations.

However, the vast majority of real estate owned by industrial enterprises is privately owned and used in the production process. Therefore, it is vital for the pricing mechanism to understand how real estate is valued by the owners of these properties.

Goal. The purpose of the article is to study the theoretical and methodological provisions and develop practical recommendations for determining the value of assets of enterprises in order to make managerial decisions.

Results. The differences between fair and consumer value are determined. It is proven that for the pricing mechanism it is vital to understand how real estate of enterprises is valued by the owners of these objects. It is proposed to use the rate of return offered by the customer, and not determined on a market basis.


price; cost; value; international financial reporting; fair value; market value

Full Text:



Smit A. (1962). Issledovanie o prirode i prichinah bogatsva narodov. Moscow: Socekgiz. [in Russian].

Rikardo D. (1955). Nachala politicheskoj ekonomii i nalogovogo oblozheniya. Moscow: Gospolitizdat. [in Russian].

Marks K. (2013). Kapital. Kritika politicheskoj ekonomii. Moscow: Mann, Ivanov i Ferber. [in Russian].

Bem-Baverk, Ojgen fon. (2009). Izbrannye trudy o cennosti, procente i kapitale. Moscow: Eksmo. [in Russian].

Tugan-Baranovskij M. Osnovy politicheskoj ekonomii. Retrieved from: [in Russian].

Marshall, A . (1993). Principy ekonomicheskoj nauki. Moscow: Progress [in Russian].

Sejs, S., Smit, D., Kuper, R., & Venmor-Rouland, P. (2009). Ocenka nedvizhimogo imushestva. Ot stoimosti k cennosti. Moscow: Rossijskoe Obshestvo Ocenshikov [in Russian].

IFRS 1. First-time Adoption of International Financial Reporting. Retrieved from:

IFRS 13. Fair Value Measurement. Retrieved from:

IAS 16. Property, Plant and Equipment. Retrieved from:

Ratcliff R. (1964). A restatement of Appraisal Theory. The Appraisal Journal. Jan & April, 50 – 67; 258-291.


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM


  • There are currently no refbacks.

Copyright (c) 2020

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.


Articles are distributed under Creative Commons Attribution  International 4.0 (CC-BY-NC 4.0) 

Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

© West Ukrainian National University

© «Ekonomichnyy analiz», 2007-2023