TRANSITION OF COMPANY‘S LONG-TERM TANGIBLE ASSETS ACCOUNTING STANDARD TO INTERNATIONAL ACCOUNTING STANDARD

Abstract

Accountings is governed by many different legislative acts, which makes it difficult for companies to select appropriate accounting solutions so that they could provide their users with accurate and correct information. Tangible fixed assets is one of the most important objects in the accounting system, which has influence on the financial reports and financial indicators of the company. This article examines tangible fixed assets and is divided into three parts. The first part analyzes the concept of tangible fixed assets according to different authors and legislative acts. The second part considers the similarities and differences of tangible fixed assets according to state and national legislation. The third part involves a research that can be used to evaluate whether it is worth for the private company “X” to move from business accounting standards to international accounting standards. The research is conducted by calculating the financial result of the company according to the business accounting standard and according to the international accounting standard. The resulting data is used to calculate the financial indicators of the company, which are used to determine whether it would be beneficial for the company to move to international accounting standards.