The topic of this work is subsequent valuation long-term tangible assets, more precisely the difference in the cost method and the revaluation method in the subsequent valuation of longterm tangible assets. Prolonged tangible assets are assets in physical, tangible form, used by a business organization for more than a year and have a net worth of more than € 464.53. It is initially measured at the cost of procurement involving the purchase value of the property and all dependent costs. After the initial recognition of long-term tangible assets, the assets are subsequently valued according to the cost method or revaluation method. An entity is required for its accounting policy to select either a cost model or a revaluation model and apply that policy to the entire group of fixed tangible assets. In addition to processing the cost and revaluation method, the legislative and regulatory framework governing accounting and financial reporting in the Republic of Croatia has been explored. Accounting policies under International Financial Reporting Standards and Croatian Financial Reporting Standards allow a company to choose between offered alternatives to valuing assets, liabilities, capital, revenue and expenditure.