ISSUES OF ACCOUNTING RECOGNITION AND VALUATION OF LONG-TERM ASSETS UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

Abstract

This study analyzes the accounting recognition and valuation of long-term assets under
International Financial Reporting Standards (IFRS) and assesses their impact on financial reporting quality.
Long-term assets, including property, plant and equipment, intangible assets, and investment property, represent
a substantial share of enterprise resources and significantly influence financial position and performance. IFRS
establishes principles-based recognition criteria and permits alternative valuation models, which enhance
transparency but also increase reliance on professional judgment.
The research is based on a qualitative and analytical review of relevant IFRS standards and recent academic
literature, supported by comparative analysis of cost-based and fair value-based measurement approaches.
The results show that IFRS improves consistency in asset recognition and comparability of financial statements
over time. However, valuation challenges remain pronounced, particularly for intangible assets and investment
property, due to estimation uncertainty and limited market data. The study also highlights the importance
of high-quality disclosures in reducing subjectivity and improving decision usefulness. Overall, the findings
confirm that effective IFRS implementation depends on consistent application, sound valuation practices, and
transparent disclosures.