buletin ştiin ific - Facultatea de Stiinte Economice - Universitatea din ...

The importance of actuarial accounting for the assessment of the elements of the financial statementsThe following situations can occur: when part of the book value of an asset owned by the corporation can be allocated on areasonable and consistent basis to the respective unit :- the economic entity must compare the book value of the unit, including that part of the bookvalue of the asset owned by the corporation to the unit, to its recoverable value. ;- any impairment loss must be recognized when the recoverable value is lower than the bookvalue; part of the book value of an asset owned by the corporation cannot be allocated on areasonable and consistent basis to that unit:- the company will compare the carrying amount of the unit, excluding the corporate asset,with its recoverable amount and recognize any impairment loss in compliance with therequirements under IAS 36;- it will identify the smallest group of cash-generating units care include the cash-generatingunit under review and to which a portion of the carrying amount of the corporate asset canbe allocated on a reasonable and consistent basis;- compare the carrying amount of that group of cash-generating units, including the portion ofthe carrying amount of the corporate asset allocated to that group of units, with therecoverable amount of that group of units;- any impairment loss is to be recognized in compliance with the requirements of IAS 36.In order to assess the goodwill associated to the transferred activity if the asset wasallocated to a cash-generating unit and the company cedes an activity within the respective unit,we take into consideration the following explanation:A company sells an activity constituting part of a cash-generating unit to which thegoodwill was allocated, for 150 m.u. The goodwill allocated to that unit can be identified orassociated to a group of assets at a lower lever than the one of that unit, only arbitrarily. Therecoverable value of the part retained from the cash-generating unit is 450 m.u.The conclusions are that:- the goodwill associated to the ceded activity must be included in the book value of theactivity when the income or the loss derived from that transfer are assessed;- the value of the goodwill associated to the ceded activity is assessed by taking into accountthat this goodwill cannot be only be arbitrarily associated with a group of assets at a lowerlevel than that unit;- the goodwill associated to the ceded activity is assessed based on the relative values of theceded activity and of the part retained from the cash-generating unit ;- the obtained result is: 150 :(150+450)=25% of the goodwill allocated to the unit is includedinto the carrying value of the ceded activity.5. ConclusionsIn the past few years, on the background of certain financial scandals, the fair valuemodel seems to be the most controversial one, as it is contested by a number of financialspecialists.Traditionally, the carrying value is the value entered in the moment of the transaction, i.e.the value entered on the date when an item or an account receivable is obtained, or when a debtis contracted. This is a verifiable value that is related to the asset and liability acquirement,which is the reason why, in accounting, the principle of the assessment based on the historiccost was established.66