Development of an algorithm for assessing the fair value of non-current assets for higher education institutions

The object of research is the algorithm for assessing the fair value of non-current assets for higher education institutions. The research problem, which is solved in the course of the work, is the lack of a clear algorithm for assessing the fair value of non-current assets of higher education institutions. There is also no methodological support for assessing the fair value of non-current assets taking into account the industry specifics of higher education institutions. The work has developed an algorithm for assessing the fair value of non-current assets of higher education institutions, which includes two directions: assessing the fair value of non-current assets independently for higher education institutions; assessment with the help of an assessment entity. The algorithm for assessing the fair value of non-current assets independently by higher education institutions is identified as the main direction, which involves the implementation of the following actions: – creation of an assessment commission; – approval of the head’s order for the assessment; – the presence of an active market; – the possibility of identifying the object; – the presence of methodological support for calculating fair value. The methods of assessing the fair value of non-current assets were investigated, among which: market, cost and income. The market method of assessing the fair value of non-current assets, which is the easiest to apply, was determined as the recommended one for higher education institutions. Its advantages and disadvantages were summarized, among the advantages the market factor of supply and demand for similar objects was highlighted. The structure of the Methodological Provisions for assessing the fair value of non-current assets (NA) was developed according to the following points: – general provisions; – criteria for allocating groups of NA subject to assessment; – criteria for identifying NA; – the presence of active market conditions; – methods of assessing fair value; – requirements for drawing up an Act on the valuation of non-current assets.