Evaluating equity in fair value accounting

This paper discusses the results of the research problem evaluating equity in accounting. In principle, equity is a differential value, the difference of assets and liabilities and its value is derived from these elements, for each individual component of which the fair value is determined. However, accounting recognizes methodologically different equity evaluation as well. In a business combination, fair value of units can be determined through the fair value of equity financial instruments, the result of which may significantly be different from the valuation of equity through value of assets and liabilities. Moreover the accounting standards specifically provide guidance on measuring the fair value of the equity financial instruments, the quoted ones as well as those not quoted.