Analysis of the Utility of the Fair Value for the Valuation of Assets of Spanish Public Sector Entities
Andrés Navarro Galera
Manuel Pedro Rodríguez Bolívar
During the last few years in Spain, the public sector accounting system has tried to adapt to the model pursued by the business sector and the pronouncements of the most relevant international standards bodies. Recently, the changes in the Directives of the European Union and the new IPSAS issued by IFAC have introduced momentous changes; one that stands out from the rest is a criterion of valuation different to the historical cost, called "fair value ". Focusing on the paradigm of the utility of information, the purpose of this research paper is to analyse, on the bases of the international standards, the advantages and disadvantages that fair value presents in the valuation of public sector assets, trying to find out its usefulness and viability once put into practice. In this context, besides a conceptual study, we have carried out an empirical research on the Spanish Local Administrations of cities with more than 50.000 inhabitants.
: fair value, public sector entities, international standards, usefulness of information.
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