engleski

Evaluation of state financial assets in the form of shares and stakes in enterprises owned by the Republic of Croatia

The assets of the state and of local and regional government consist of financial and non-financial assets. The state and local and regional government may establish legal entities or acquire shares or stakes in companies, institutions and other legal entities if such acquisition functions as the execution of public services and activities in the public interest. The Act on the Management and Disposal of Assets Owned by the Republic of Croatia regulates the jurisdiction of authorities regarding the management and disposal of state assets, and the establishment and management of the State Assets Register. In terms of state financial assets, the Register should contain a list of relevant data on shares and stakes in state-owned companies. Asset valuation is carried out on an accrual basis with the historical cost method which means that assets are shown at their book value and revalued amount. This paper explores and critically evaluates the approach to shares and stakes evaluation and measurement in enterprises owned by the Republic of Croatia (hereinafter Croatia). It analyses the theoretical and legal basis for the application of such an approach and the advantages and disadvantages of applied valuation rules. The paper compares existing evaluation practice in relation to the requirements of the International Public Sector Accounting Standards (hereinafter IPSAS) and the application of the fair value concept.

Croatia, evaluation, shares, stakes, state financial assets

nije evidentirano