Valuation of Assets and Liabilities on the Balance Sheet Date

Valuation of assets and liabilities is a critical stage in the preparation of financial statements, ensuring the accurate and reliable presentation of an entity’s financial position in the accounting records. But what are the valuation rules for different balance sheet items, as outlined by the Polish Accounting Act (UoR) and International Financial Reporting Standards (IFRS/IAS)?

On the balance sheet date, the valuation of assets and liabilities requires determining their value based on the principles established in the accounting policy. Whether it’s intangible assets, property, plant, and equipment, leased assets, receivables, liabilities, or provisions—each category follows distinct valuation rules aligned with the Polish Accounting Act or International Financial Reporting Standards (IFRS).

In situations where the entity loses its ability to continue as a going concern, assets must be valued at their net realizable selling prices, and provisions for additional costs and losses must be created.

The table below outlines the valuation principles for various balance sheet items according to the Polish Accounting Act (UoR) and International Financial Reporting Standards (IFRS).

author: Piotr Czarnecki, Junior Reporting Specialist, MDDP Outsourcing Warsaw

We invite you to read the remaining articles in the ‘Financial Report 2025’ series:

1. Schedule of Works on the Financial Statement: The Key to Effective Reporting
2. Determining the Form of Financial Reporting: Key Aspects
3. Audit Obligation and Selecting the Auditing Company: Key Aspects
4. Inventory of Assets and Liabilities and Their Valuation
5. Valuation of Assets and Liabilities on the Balance Sheet Date
6. Preparation and Signing of the Annual Financial Statement: A Step-by-Step Guide
7. Consolidation of Financial Statements: Key Rules and Requirements
8. E-Statements: A Guide to Electronic Reporting of Financial Statements
9. Sending a Financial Statement After the Deadline: Consequences and Procedures

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