Initial Measurement at Fair Value

Measurement in accounting is the most important instrument of creation of the financial situation of the accounting entity in the financial statements. In the article we apply general definition of measurement process on the initial measurement of assets, liabilities, set of assets and set of liabilities at fair value in the entrepreneur accounting. For this purpose we characterize fair value and define assets, liabilities, which are measured at fair value as of the date of the accounting transaction. In the next part of the article we define differences between transaction price and fair value in different cases of fair value measurement according to the Act on Accounting (Act. No. 431/2002 Coll., 2016) and the accounting procedures of entrepreneurs (Decree of the Finance Ministry of the Slovak Republic No. 23054/2002-92, 2016). At the end we state the need of more accurate solution of approaches to accounting for and presentation of the differences between fair value and transaction price in the Slovak accounting legislation of entrepreneurs. We also introduce the necessity of establishing of the transaction conception and other conception like transaction price and transaction costs into accounting legislation in the Slovak Republic.