The analysis of the appliance of fair value concept in croatian companies from real sector

The fair value concept, as a prevailing measurement base in contemporary financial reporting, is introduced by International Financial Reporting Standards (IFRSs) and is also implemented in Croatian Financial Reporting Standards (CFRSs). The basic aim of this chapter is to identify to what extent Croatian companies from real sector are using fair value concept for measuring assets and liabilities. In order to fulfill the basic goal of the chapter, the research regarding the implementation of fair value concept is conducted in Croatian companies from real sector in 2016. Research sample was constituted of 100 Croatian companies from real sector. The sample was created by random sampling and each company had the same probability of selection. The research is carried out through the analysis of companies’ accounting policies disclosed in notes to the financial statements. Research results confirm that Croatian companies from real sector mostly apply cost concept in regards to fair value concept. Research results have also indicated that fair value concept is mostly applied in measuring land, properties, plant and equipment, biological assets, and financial instruments, although, its application is not widely used among Croatian companies from real sector.