Implications of applying fair value accounting to modern financial reporting

Fair value accounting is a concept whose main goal to provide quality information about financial status, success and cash flows in order satisfy the informational needs of investors. By introducing this concept, focus placed on balance sheet not income statement as was case historical cost concept. The reporting show assets, liabilities net assets at fair date. subject research work application accounting, which will be shown concrete example equipment evaluated according cost, then value. After that, comparison these two concepts made, present effects valuation liabilities. importance applying correct periodization expenses, while presentation current market prices. elaborated moments resulted reconciliation unification concepts, realized by hybrid model reporting.