What is the function of valuation in accounting?
The function of valuation in accounting is to homogenize the different magnitudes obtained throug...
What is the function of valuation in accounting?
The function of valuation in accounting is to homogenize the different magnitudes obtained through measurement and assign them a common unit of measure. Valuation in accounting is not necessary, according to the theory proposed by Ijiri. The process of valuation in accounting is composed of three consecutive moments: physical measurement, determination of the corresponding conversion parameter, and monetary expression of the obtained physical units.
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