Transition, Vol. 24 No. 48, 2021.
Original scientific paper
THEORETICAL AND PRACTICAL CHALLENGES OF DIFFERENT PROPERTY REVALUATION MODELS IN INFLATIONARY CONDITIONS
Vinko Belak
; Sveučilište u Zagrebu, Ekonomski fakultet
Abstract
The significant strengthening of inflation in recent times has created motives and the need to apply revaluation models, especially when it comes to the valuation of real estate. The use of the revaluation model or the fair value model, which differ significantly, depends on the way the real estate is used by the subject. Given that the regulations and instructions for the application of these models are very complicated, the first goal of this paper is to illuminate in detail how these models work. The second goal of this paper is to reveal the advantages and disadvantages of the revaluation model and the fair value model on this basis, using the method of logical judgments, in order to facilitate the understanding and decision-making of users of financial statements.
Keywords
revaluation, inflation, profit from revaluation, revaluation model, fair value model.
Hrčak ID:
309052
URI
Publication date:
21.10.2023.
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