The purpose of the research and the aim of this graduate paper is to find the most favorable way of measuring tangible fixed assets and to show the impact of the method of subsequent measurement of tangible fixed assets on the financial statements. Long-term tangible assets are assets in physical, tangible form, which the business organization has been using for more than a year and has a net value of more than HRK 3,500.00. It is initially measured at cost, which includes the cost of the asset and any related costs associated with the acquisition of that asset. As a subsequent measurement of fixed assets, the business organization is offered a choice of two methods, the depreciation method, and the revaluation method. Depreciation is a gradual loss on the value of an asset, while revaluation is mainly an increase in the value of an asset. The selected method is recorded in the accounting policies of the business organization and must be applied to the entire asset or in accordance with what is stated in the accounting policies of the business organization. Research on practical examples leads to the result that the methods of subsequent measurement of tangible fixed assets have a significant impact on the appearance of financial statements of business organizations. Both methods affect the balance sheet, but also the profit and loss account. Depreciation has the effect of reducing the value of fixed assets and reducing the profit for the current year. Revaluation also affects these items as well as depreciation, but can have a much greater impact than depreciation, because it is based on fair or market value that can often be unpredictable. More about this can be read in the fourth chapter of this paper. Which method of subsequent measurement of tangible fixed assets is better? It cannot be said with certainty because it depends on a several other factors, such as business activity or the size of the organization. This paper is intended primarily for pupils and students, but also for entrepreneurs and all interested groups for this topic.