Home bilancio Valuation of fixed assets: lasting loss of value

Valuation of fixed assets: lasting loss of value


In order to determine the value to be charged to the balance sheet of fixed assets , it is necessary to refer to what is prescribed by article 2426 cod. civ. which, after defining, at no. 1, registration at purchase cost , at no. 3 provides that if the investment, on the closing date of the financial year, is lastingly lower than the cost value , it must be recorded at this lower value .
The investments, listed or not , since fixed assets, must be valued participation by participation , attributing the specifically incurred cost , which must be maintained in subsequent years, unless there is a loss of value: in this case there is an obligation to proceed with the write-down .
Consequently, the editor of the financial statements must, accurately and participation by participation:

analyze and ascertain the lasting nature of the loss of value ;  » Read More

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