arvestussätted

Arvestussätted are the methods and practices used to record, measure, and present financial information in accounting. The term covers how transactions are recognized, how assets and liabilities are valued, and how income and expenses are reported in financial statements. In practice, arvestussätted determine what is measured, when it is recognized, and which measurement bases are used.

Typical components of arvestussätted include recognition criteria for revenues and expenses, the chosen measurement bases (such as historical cost or fair value), and the methods used to depreciate or amortize assets. They also cover how inventories are valued (for example by common methods such as FIFO or weighted average), how impairments are assessed, and how foreign currency transactions are translated. Depending on the jurisdiction and industry, arvestussätted may also address consolidation, equity accounting, and the presentation of financial statements.

In Estonia, arvestussätted are shaped by national accounting legislation, most notably the Accounting Act, as well as European Union directives. Companies may prepare financial statements under Estonian Generally Accepted Accounting Principles (Estonian GAAP) or, for certain entities, under IFRS. Regardless of the framework, arvestussätted must be applied consistently and disclosed when changes occur, to ensure transparency and comparability.

The choice of arvestussätted influences reported profitability, financial position, and liquidity, and it affects tax reporting and internal management information. Firms typically select methods aligned with regulatory requirements, industry practices, and organizational needs, while ensuring auditability and the ability to compare financial results over time and with peers.