DISCOUNTING AS A FINANCIAL TOOL FOR THE VALUATION OF ACCOUNTING OBJECTS: PROBLEMS OF IMPLEMENTATION IN TERMS

Abstract

In the context of the financing of the world economy, the cost indicator becomes a key indicator of the efficiency of the functioning of any business entity. According to the classical theory of corporate Finance, the increase in the value of business entities in the economy under constant conditions becomes the key to the growth of socio-economic well-being within the country. The growth of the company's value in the market is a reflection of the potential profitability for investors, which, in turn, leads to the stimulation of positive expectations of investors and the growth of the share price. At the same time, the need to see the prospects of the company's development, its competitiveness in the global business environment objectively requires the use of modern approaches and methods of assessing the value of the company. One of the innovations IFRS, for Ukrainian business was the use of discounting for the valuation of accounting objects, which will be disclosed in the financial statements. In this article we will determine what is the discounting for the valuation of accounting objects, how it is calculated and in what cases it should be done. The issue of discounting is disclosed in IFRS 13 fair value Measurement (IFRS 13). Discounted or present value is the amount of expected future income, expense or payment (future amount) discounted based on a particular interest rate. The question is posed in this way. We know a certain amount that will be received or paid after a certain time, but do not know what is the current value of the future payment. The discounting of value is based on the real situation that a certain amount of money today is worth more than in the future, in a year or several years, for the fact that it can be used to generate income in the form of interest. The calculation of the current value, or discounting, gives an answer to the question.