The economic nature, necessity, classification, characteristics, and theoretical foundations of long-term asset valuation

Abstract

This article systematically examines the economic nature, necessity, classification, characteristics, and theoretical foundations of long-term asset valuation. It traces the evolution of the concept of long-term assets from classical political economy to contemporary accounting and financial reporting theory. The theoretical views of Adam Smith, David Ricardo, Karl Marx, Irving Fisher, J. B. Clark, and Oliver Williamson on capital and assets are examined in relation to modern financial reporting principles. Particular attention is given to the classification and economic substance of property, plant and equipment, intangible assets, investment property, long-term financial assets, biological assets, and right-of-use assets under International Financial Reporting Standards. The study also examines the significant changes introduced by Uzbekistan's National Accounting Standard No. 5 "Property, Plant and Equipment," effective from 1 January 2025, including the abolition of the previously applied monetary threshold of 50 basic calculation units and the increased role of accounting policy in asset recognition and classification. The findings demonstrate the interrelationship among the cost, revaluation, impairment, and fair value approaches to asset measurement. The study substantiates that reliable valuation of long-term assets is an important factor in improving the quality and relevance of financial information, maintaining net asset stability, strengthening corporate transparency, and supporting the investment attractiveness of joint-stock companies.