What is true and real value?

The right and real value for accounting purposes is the value considered to be an accurate and adequate person who has prepared a statement. This term can be used in several contexts, including real estate valuation for taxes and preparation of audit reports for corporations. There are no hard and rapid definitions, although generally accepted accounting procedures provide certain instructions of accountants who want to prepare messages with a high degree of reliability. The statement may be signed or stamped with the indicator that the value is true and fair, in the opinion of the preparation. This means that all numbers cited are almost accurate, based on the knowledge of the preparation situation. For example, in statements on accounting accounting, numbers are usually rounded for easy accounting, but should be generally correct. This includes not only a statement of cash but also assets. These ensure that the accountants use consistency in the preparation of financial statements. Some assets are difficult to value because they do notprepared equivalents that can be used for comparison. For example, shares are relatively easy to evaluate because they are purchased and sold in an open market and people can look at numbers for the same stock. Real estate is more complicated because there is no same equivalent to compare them with.

The establishment of a true and real value is important for activities such as determining the tax liability. Accountants usually want to minimize liability for their clients or employers and use the available legal means to do so adequate deductions and note that the assets depreciate over time. When they declare that the Reflect statement and real value statements are based on the claims issued in a statement and believe it is an accurate reflection of account balances and holding assets.

Standards for accountants may depend on the types of documents they prepare. From professional organizations are availableICI detailed and extensive instructions that encourage accountants to use consistent, fair and adequate methods in their work. The consistency is crucial because the accounts prepared by one accountant should look similar if they are prepared by another accounting professional. If there were radical differences, one or both does not hold accounting standards. Auditors can prepare their own estimates of true and real values ​​for comparison with the sums of accounting statements.