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Valuating property, plant and equipment after recognition with the purpose of preparing the annual financial statements is an extremely important step in presenting a true and fair view of the entity. Thus, the companies must take into account the main valuation methods used and develop appropriate accounting policies and procedures to ensure that the users of financial and accounting information are properly informed and understand every change that occurs. The book value, respectively the carrying amount, of property, plant and equipment is represented abiding by the prudence concept, according to which every impairment or change from the determined value shall be taken into account. The efficiency with which these assets are valuated brings surplus value to the entity and has a direct impact on the financial statements.The main objective of this article is to present the methods of valuation used to valuate property, plant and equipment. This way, at the end of the research the main applicable accounting treatments and the differences between IAS 16 Property, Plant and Equipment and Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented, will be understood.

Valuating property, plant and equipment after recognition with the purpose of preparing the annual financial statements is an extremely important step in presenting a true and fair view of the entity. Thus, the company must take into account the main valuation methods used and develop appropriate accounting policies and procedures to ensure that the users of financial and accounting information are properly informed and understand every change that occurs. The book value, respectively the carrying amount, of property, plant and equipment is represented abiding by the principle of prudence, according to which every impairment or change from the determined value shall be taken into account. The efficiency with which these assets are valuated brings surplus value to the entity and has a direct impact on the financial statements. The main objective of this article is to present the methods of valuation used to valuate property, plant and equipment. This way, at the end of the research the main applicable accounting treatments and the differences between IAS 16 Property, Plant and Equipment and Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented, will be understood.

Towards the last decades of the 20th century there had been a considerable increase in the social role of accountancy, owing to the fact that the information it furnished influenced more and more the behavior of its users in the process of decision-making. Therefore, as a current accountancy final product, the financial reports represent the main source of information for a large range of users. They indicate the financial status and performance of an enterprise, so as to evaluate its capacity to furnish both cash and cash equivalents. All these financial statements are quantified by value, based on the principles and methods of valuation. The historical cost, prudence, the principle of stability for monetary unity and the on going nature of the operational activity provide the frame of valuation in the field of accountancy. Following the attributes awarded to accountancy and the principles which are associated to it, literature states the idea that accountancy information is a compromise which should allow for the presentation of faithful images of assets, debts, financial position and enterprise performance, correct and honest accounts. At the same time, it needs to respect a series of principles, among which those of valuation, monetary nominalism and prudence. All these have a determinant influence on the conception of 'faithful'/real image. [ABSTRACT FROM AUTHOR]