Fair value accounting Research Papers (original) (raw)

2018, Academy of Accounting and Financial Studies Journal

This study examined the view of stakeholders as to whether or not Fair Value Measurement (IFRS 13) increased disclosure will lead to more meaningful investment decisions. The study adopted the Survey research design involving the collection of data from auditors of the “Big 4” and accounting academics in selected private universities in Nigeria. Primary data were obtained through the administration of copies of survey questionnaire to respondents. Two hypotheses were formulated and tested using Peason Product Moment Correlation and Independent Sample T-test at a significant level of 5%. Findings from the study revealed an association between IFRS 13 increased disclosure requirement and investment decisions. The result also revealed differences in the standpoint of accounting academics and auditors regarding the impact IFRS 13 increased disclosure have on investing decisions. The study recommended that the Financial Reporting Council of Nigeria should ensure that all companies in Nig...

2011, Accounting Organizations and Society

When liabilities are accounted for at fair value, a deterioration of a company's credit risk results in the reporting of an income statement gain; an improvement in a company's credit risk results in a loss. Many argue that these income statement effects are counterintuitive and that financial statement-users are likely to misinterpret fair value gains as positive signals and fair value losses as negative signals. Utilizing an experiment with CPAs as participants, we find that these arguments are indeed valid. Specifically, we find that over 70% of the participants incorrectly assess a company's credit risk as improving (deteriorating) when a fair value gain (loss) is recognized. We also find that disclosures that explicitly specify the relation between the direction of the credit risk change and the income statement effect significantly reduce participants' misinterpretations, and are more beneficial when fair value gains versus losses are recognized. These findings provide empirical evidence in the debate over the recognition of company-specific credit risk changes and offer direction for improving disclosures in the area of fair value accounting.

2010

La valorisation du capital marque en tant qu'actif incorporel suscite un grand débat à la fois dans le monde académique et chez les praticiens. Face à l'absence de reconnaissance en comptabilité des marques générées en interne, la divulgation d'informations complémentaires pourrait être la solution la plus adéquate pour informer le marché sur la valeur de ces actifs incorporels. Toutefois, le grand nombre de méthodes d'évaluation financière des marques et l'absence d'un consensus sur l'utilisation d'une approche commune rendent la diffusion et l'acceptation de la valeur financière des marques comme un critère d'évaluation des entreprises sujettes à de nombreuses difficultés. Cet article étudie la pertinence de la valorisation financière des marques et son impact sur la capitalisation boursière des entreprises qui les possèdent. Sur la base d'un échantillon de 153 observations représentant les valeurs des principales marques internationales valorisées sur trois années successives (2007-2008-2009) par deux organisations spécialisées et indépendantes (Interbrand et Brand Finance), les résultats de notre étude démontrent la pertinence des valeurs des marques communiquées par ces deux organismes. Par ailleurs, une différence statistique apparaît lors d'une étude comparative démontrant une pertinence plus importante d'une méthode de valorisation des marques sur l'autre.

2024, Cuadernos de Administración. Universidad del Valle

This article examines how listed companies in Peru and Chile have applied the measurement and disclosure criteria for biological assets under IAS 41. Additionally, it seeks to determine the influence of variables such as country, type of audit firm, nature of the biological asset, investment in biological assets, company size, and profitability on these measurement criteria and disclosure levels. We used a quantitative approach, a descriptive-relational crosssectional study on the 2021-2022 financial statements, and a content analysis of the annual reports and Chi-Square, one-factor ANOVA, and Pearson correlation tests to test our hypotheses. The findings demonstrate that neither the country, type of audit firm, nor the type of biological asset impacted the measurement model. The disclosure level primarily includes descriptions of biological assets, agricultural activities, and financial risks; it is higher for Chilean companies and those audited by the 'Big Four' audit firms. There was a significant correlation between investment in biological assets and profitability with the level of disclosure, which is higher for companies with substantial investments in biological assets that seek greater transparency with their investors and creditors in their investment decisions.

2015, Jordan Journal of Business Administration

The main objective of this study is to investigate whether developments in financial reporting following the international financial reporting standards adoption resulted in financial statement information being more value relevant over time. This study focuses solely on quantitative methods and employs secondary data in addressing the research questions. The relevance of fair value revaluation has been investigated by studying its association with firm's future performance, measured by its operating income and operating cash flow. The theoretical framework of (Aboody et al., 1999) have been used to examine this relationship. A sample of Jordanian firms (consisting of commercial banks and real estate companies) listed in the Amman stock exchange during the 2008–2011 times period has been used. Our findings, based on multiple regression analysis showed that, firm's future performance measured by operating income or operating cash flow is significantly positively associated wi...

2015

Following the theories of gray and positive accounting this study examines the options in the measurement of assets and the usefulness of fair value. Using a sample of 104 Portuguese and Spanish companies with listed securities, the research analyzes factors associated with the fair value option and whether the listing incorporates this information. The results reveal a conservative behavior, where only 19% of companies use the fair value, specially the Portuguese (35%), confirming that the country of origin has a significant influence on this choice. The fair value option is more expressive on investment properties, and less expressive in intangibles. The sectors denote significantly different behaviors, and companies with higher quotes are more cautious using the fair value. The market reacts differently about the nature of this information. It is favorable to its sectorial utilization, reacting negatively to a more widespread use (Portugal), which supports the argument that the r...

2015

There is an increasing recognition that annual reports need to better disclose the risks facing a company. Provision of a defined benefit scheme poses one of these risks as companies take on uncertain long term obligations to make future pension payments. This report addresses the issue of how companies should report this risk so that stakeholders can understand a company's exposure to pension risk. As well as providing an analysis of current defined benefit pension scheme risk disclosures by FTSE 100 companies, the report provides examples of current practice and suggests best practice for the future. The authors also make recommendations to the International Accounting Standards Board (IASB) on its current IAS 19 exposure draft and to the UK Accounting Standards Board (ASB). This project was funded by the Scottish Accountancy Trust for Education and Research (SATER) (for further details see page 49). The Research Committee of The Institute of Chartered Accountants of Scotland (ICAS) has also been happy to support this project. The Committee recognises that the views expressed do not necessarily represent those of ICAS itself, but hopes that the project will assist the standard setters in their deliberations on pension risk reporting requirements and guidance.

Technium Social Sciences Journal

The research aims to demonstrate the impact of applying this measurement in improving the transparency of financial reporting and its application in Iraqi companies. A high level of transparency in the financial statements has been shown. It has been concluded that the level of transparency of the financial statements when choosing the fair value measurement is higher than the level of transparency when choosing the historical cost measurement, which helps in comparing the financial statements of the different economic units, and that the basis of comparison between it and the measurement based on Historical cost is to achieve the required amount of appropriateness characteristic and honest representation.

2009, Journal of Accounting and Public Policy

better predictor of future net income relative to comprehensive income. Our findings suggest that mandating all Canadian firms to adopt the new accounting standards is expected to enhance the usefulness of financial statements. Our findings, therefore, should be of interest to Canadian accounting policy makers as they provide ex-ante evidence on the potential usefulness of mandating firms to report comprehensive income and the components of other comprehensive income in their financial statements.

2018

Productive biological assets hold a special place in agricultural companies. A biological asset is a living animal or plant, such assets being included, from the accounting point of view, in the structure of tangible assets. We seek to present, in the pages of this article, the main aspects related to their recognition, assessment and accounting, combining the theoretical and the empirical research . We will make an incursion in the specialised literature and we will present the peculiarities of the accounting of the biological assets. The considerations underlying this article also take into account the fact that the productive biological assets are accounting structures approached in this field relatively recently, but, as we will prove herein, important for any agricultural unit.

2018, International Journal of Economics and Financial Issues

The purpose of this study to determine factors influencing the quality of financial reporting local government in Indonesia. The factor studied consist of commitment apparatus, role of internal audit, and accounting information system. The sample is picked up randomly by a random sample technique. The data collected is then tested for its validity and reliability so that the data is valid to be processed. The unit of analysis in this study is 66 unit tool of regency/city Indonesian local government . Hypothesis to be tested by a statistical t test: Ho is rejected if tcount > tcritical, ? = 0.05 level. The results showed that the commitment apparatus, role of internal audit have a significant effect on the quality of accounting information systems. Furthermore it was found that the quality of accounting information system has implications for the quality of financial reporting.

Las Normas Internacionales de Contabilidad y de Información Financiera establecen que tanto los recursos como las obligaciones de una entidad deben ser presentadas, en los respectivos estados financieros, a su Valor Razonable, estableciéndose para ello, de acuerdo a su naturaleza y características, métodos de valuación así como el tratamiento de las diferencias que se produzcan entre el Valor Razonable determinado y el Valor en Libros. Dado este contexto el objetivo de este trabajo es revisar los métodos de valuación a Valor Razonable establecidos en las distintas Normas Internacionales de manera de desarrollar un modelo genérico de valuación de los recursos (obligaciones) tanto desde una perspectiva individual como de la sinergia que se producen al utilizarlos en conjunto e incorporando los objetivos de revisión del auditor de los estados financieros. Al concluir, se destaca que las normas contables hacen hincapié en la presentación del valor razonable de los recursos (obligaciones...

This timely book is a rare, cogent analysis of the regulation of insurance companies from the point of view of economics. The topic of insurance regulation has come right to the fore in the policy debates in financial regulation, and rightly so given the pivotal role of insurance companies in the financial system as direct and indirect claimholders of banks and other leveraged institutions, as well as their long-term role in channeling savings for an aging population. And yet, the current framework for insurance regulation across the advanced economies is a patchwork of rules that have built up over years, based loosely on actuarial considerations, and which differ substantially from one jurisdiction to another without much rationale. This book sets the standard for debate in this important area. The book surveys the recent episodes of failures of insurance companies, reviews the actuarial basis for insurance regulation and its weaknesses, and proposes an economic rationale for insurance regulation based on capital as a way of mitigating moral hazard. The scholarship backing the book is impeccable, as would be expected from authors of such caliber, but the book has added authority arising from the fact that one of the authors (Plantin) also has first-hand experience as an insurance regulator. The book will be of wide interest to financial economists, and will be essential reading for policy makers in central banks and financial regulatory bodies. In time, this book will gain the status of (and be seen as a natural accompaniment to) Dewatripont and Tirole's classic on the prudential regulation of banks, and will be widely read and cited.

2017, Review of Accounting Studies

Some firms voluntarily make disclosures about the controls and processes in place to ensure the reliability of fair value estimates. Consistent with these disclosures being driven by investors' concerns about the reliability of their SFAS 157 estimates, we find that firms with more opaque estimates are more likely to provide such disclosures. We then examine whether these disclosures improve investors' perception about the reliability of fair value estimates. We find that they are associated with higher market pricing and lower information risk for Level 3 estimates. Further analyses of the disclosures reveal that the following types of information are particularly important to investors: discussion of the external and independent pricing of fair value estimates and their proper classification according to the SFAS 157 hierarchy. Overall, our results suggest that the voluntary reliability disclosures that firms provide beyond SFAS 157's three-level estimates help reduce investors' uncertainty toward the more opaque fair value estimates.

2017, SSRN Electronic Journal

This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter, FAS 159). Consistent with the notion that gains and losses contain value-relevant information, we find a positive correspondence between a firm's FAS 159 fair value liability gains and losses and current period stock returns. However, further analysis indicates that fair value gains and losses from liabilities have a negative association with future returns, suggesting that investors misprice this earnings component. This negative association is stronger for firms with low levels of institutional ownership. While the value-relevance tests provide some evidence that fair value changes from liabilities have information content, the negative association with future stock returns suggests that these gains are eventually not realizable or that the market has overreacted to the initial recognition of these gains. Overall, our study contributes evidence regarding the controversy over the recognition of fair value liability gains and losses by providing direct empirical evidence that such gains and losses are priced by the stock market but subsequently reversed within the next 12 months.

2016, Advances in Accounting

We provide survey evidence of chartered accountants' perspectives on the proposed conceptual framework of the International Accounting Standards Board. Our survey obtains their views on the changes in the definitions of assets and liabilities, recognition criterion, and additional guidance in these areas, as well as issues relating to other comprehensive income, business model-based accounting, and choice of measurement basis. Our field evidence suggests broad consensus with respect to most of these changes. The areas that generate the most disagreement among our respondents relate to the removal of economic benefits in the proposed asset definition, the proposal to remove the minimum probability threshold from the asset recognition criterion, and the use of fair value as a measurement basis for certain difficult to measure assets. Overall, our results provide interesting insights regarding how chartered accountants view the proposed conceptual framework.

2012

This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter FAS 159). We find a positive correspondence between a firm's FAS 159 fair value liability gains and losses and stock returns. Further analysis indicates that fair value gains and losses from liabilities attributable to the change in a firm's own credit risk, which are considered counter-intuitive by critics of fair value accounting for liabilities, are also positively related to returns. We also document that the volatility of earnings that incorporate FAS 159 liability fair value gains and losses is positively associated with market measures of firm risk. Our study contributes to the controversy over recognition of liability fair value gains and losses by providing direct empirical evidence that such gains and losses are value and risk relevant.

2011, SSRN Electronic Journal

Some firms voluntarily make disclosures about the controls and processes in place to ensure the reliability of fair value estimates. Consistent with these disclosures being driven by investors' concerns about the reliability of their SFAS 157 estimates, we find that firms with more opaque estimates are more likely to provide such disclosures. We then examine whether these disclosures improve investors' perception about the reliability of fair value estimates. We find that they are associated with higher market pricing and lower information risk for Level 3 estimates. Further analyses of the reliability disclosures reveal that the following types of information are particularly important to investors: discussion of the external and independent pricing of fair value estimates as well as the estimates' proper classification according to the SFAS 157 hierarchy. Overall, our results suggest that the voluntary reliability disclosures that firms provide beyond SFAS 157's three-level estimates help reduce investors' uncertainty toward the more opaque fair value estimates.

2020, Journal of Finance and Accounting

Prior research suggests there are significant differences in how investors perceive the reliability of fair values. An unaddressed question in this stream of research is whether crosscountry differences in institutional factors can mediate differences in reliability for the fair value hierarchy measurements. We contribute to the research on fair value accounting by examining the impact of institutional factors toward the perceived reliability of fair value measurements in an international context. Based on an international sample of banks across twenty different countries, we find that the probability of crash risk is lower among countries with better financial development infrastructure, greater level of trust, tighter security regulations and higher level of disclosure requirements. These results apply to Level 1 assets but not to Level 2 and Level 3 assets. We also document that these crosscountry factors improve the trading volume of our sample banks. Our study provides early evidence suggesting that fair value measurements across the fair value hierarchy are impacted by a country's institutional background and financial development as well as the extent of its securities regulation and disclosure level. Our study suggests that there are ongoing concerns toward opaque fair values which are not fully eliminated by institutional differences. In addition, these differences matter in influencing investor willingness to trade in these stocks.

2004, Accounting Forum

The international Joint Working Group of Standard Setters (JWG) was established by the IASC (replaced by the IASB in 2001) and other national accounting standard setters for the purpose of developing a comprehensive set of principles for reporting financial instrument at fair value. In December 2000 the JWG issued a Draft Standard addressing the accounting for financial instruments and similar items. The proposals in the Draft Standard would affect existing accounting practice in many areas, including those related to the use of hedge accounting. This article states the main problems that could result from applying the provisions of that Draft Standard, offering some alternative approaches to overcome those problems.

2017, Finance and the Welfare State

This chapter concludes the book on financial evolution and regulatory regimes in Sweden. It summarizes the lessons learned from the Swedish experiences from banking development and banking regulations, and ends with discussing the question whether a new macroeconomic regime is being initiated. Keywords Financial crises • Macroeconomic regimes • Regulations Basel regulations • Social democracy This book provides an overview of the Swedish experience of financial regulation and development from around 1900 to 2015. It places special emphasis on the interaction between national and international phenomena and on how financial regulations are usually connected to larger shifts in general macroeconomic policy. This chapter distills a number of key points from the Swedish experience.

2016

In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper explores the risk disclosure practices in annual reports of European primary insurers in the Dow Jones Stoxx 600 Insurance Index between 2005 and 2009. On the basis of a self-constructed risk disclosure index, the study examines the relation between the extent of risk disclosure and insurance companies' characteristics such as size, risk, profitability, ownership dispersion, cross-listing, home country and type of insurance sold, to draw inferences regarding motives for enhanced risk disclosure based on positive accounting theory.

2012

On February 16th, 2012, the European Commission published a White Paper entitled "An Agenda for Adequate, Safe and Sustainable Pensions". It proposes a series of measures related to information and monitoring, European harmonisation and portability, and pension design. After a short summary of some of the main challenges facing European pension systems, this paper discusses the Commission's proposals point by point.

2015

All rights reserved. Photocopies for personal use of the reader, not exceeding 15% of each volume, may be made under the payment of a copying fee to the SIAE, in accordance with the provisions of the law n. 633 of 22 april 1941 (art. 68, par. 4 and 5). Reproductions which are not intended for personal use may be only made with the written permission of CLEARedi, Centro Licenze e Autorizzazioni per le Riproduzioni Editoriali,

2002

This dissertation provides the views in the Insurance Paper 1999 developed by International Accounting Standard Committee's (IASC) Steering Committee. By the time the project is complete, a fair value accounting system for assets will be in place because as a result, liabilities should also be measured at fair values. Insurance contracts are either financial instruments or should be treated as if they were financial instruments. Fair value should be based on pools of similar contracts. Given the longterm nature of insurance contracts and the inherent uncertainties in the projection of the cash flows, the fair value measurement of insurance liabilities should include provisions for risk and uncertainty and thereby reflect the risks as perceived by the market. This dissertation has been divided into two categories (the difference), life insurance and non-life (general) insurance. No distinction should be made between general insurance and life insurance in designing a set of accounting standards for all insurance contracts. It is premature at this stage to recommend disclosure and presentation details before a better view of the accounting approach to be applied become available.

2011

Financial support from the PD Leake Trust (a charitable trust associated with the Institute of Chartered Accountants in England & Wales ['ICAEW']), with support from Deloitte and KPMG, is gratefully acknowledged for the research project into life assurance accounting of which this work forms a part. Grant applications are managed by the Centre for Business Performance ['CBP']. We are also grateful for the helpful comments of the members of the Academic Panel of the UK

2017, Journal of International Accounting, Auditing and Taxation

The aim of this paper is to examine the value relevance of fair value accounting of biological assets under IAS 41-Agriculture-using 389 firm-year observations of listed firms in 27 countries worldwide that had adopted IFRS, for the period between 2011 and 2013. In order to operationalize it as the ability of book value to explain market equity value, this study adjusts the original Ohlson model. The results confirm that recognized biological assets are value relevant at fair value and they are more value relevant in firms that exhibit higher disclosure levels. The same results were obtained when this analysis was conducted for bearer biological assets, but when it was applied to consumable biological assets, the results suggest that investors do not value recognized biological assets in firms that exhibit higher disclosure levels. Bearing in mind the current adjustments to IAS 41, according to which firms will be permitted to choose either the cost or the revaluation models for mature bearer plants under IAS 16-Property, plant and equipment-for annual periods beginning on/or after 1 January 2016, this paper seeks to help standard setters to better understand the market valuation implications of this standard.

2010, International Journal of Critical Accounting

Despite the relevance of fair value accounting to the financial statements, it was not adopted by standard setting bodies until recently. This paper investigates the evolution of fair value accounting in the USA and shows that several factors, such as accounting standard setting bodies, government, business and investor-related issues contributed to the lack of adoption of fair value accounting between the 1930s and 1990s. The paper further discusses changes in the standard setting environment as well as other criteria, such as technological advancements, that have contributed to the recent adoption of fair value accounting.

2010, Status: published

The IASB is well underway to become the global accounting standard setter. For the IASB, being a private organization, diverse constituents' participation in its due process of standard setting is a key element to reinforce its credentials as a legitimate standard setter. Therefore the research objective of this paper is to analyse constituents' formal participation in the due process of the international accounting standard setter in terms of stakeholder diversity and geographical diversity. In order to detect developments in this participation, we undertake the analysis over the period 1995-2007. Based on an analysis of 6 444 comment letters sent over that time period, we find an increasing particicpation of preparers and standard setters over time and a loss of interest of users in formal participation over time. Constituents (except for preparers) from countries with a common law background, and therefore being more familiar with private standard setting, participate more in the due process of international accouting standard setting. The geographical origin of the participating preparers on the other hand is significantly associated with the adoption status of the IASs in their country.

2016, International Journal of Economic Behavior

This study aims at monitoring the role of Net loans for banks in terms of impact on total assets and, consequently, the trend of period between 2005 and 2013 related Reserves for impaired loans, by using the Pearson correlation extracted from Bankscope, a database containing comprehensive information on financial companies in Italy. Our findings raise important issues on the administrative supervision of banks and the financial system in general. A strong concern regarding t impaired loans emerged and consequently the possibility of mergers has become one of the solutions for pursuing a more efficient risk policy

2007, International Journal of Accounting, Auditing and Performance Evaluation

In recent years, there has been an increasing public demand for firms, especially financial institutions, to disclose more information related to derivatives due to a series of high profile financial scandals. A number of countries have established accounting and reporting standards for derivative instruments. Limited research on the usefulness and quality of derivative related disclosures are mostly based on the US. This paper examines the usefulness of derivative related disclosure in the Australian banking sector. We first review the policy and requirements for derivative related disclosures in the Australian banking sector. Then we investigate the usefulness of derivative related disclosures based on a sample from major Australian banks. Our preliminary empirical results reveal that the disclosure of principal amounts and credit disclosure appear to be insignificant to stock returns. However, the disclosures of fair gains and losses for both trading and non-trading derivatives are significant to the stock returns.

1998, Journal of Accounting, Auditing & Finance

The first objective of this study is to describe the substantial differences across property-liability insurers in accounting classification decisions for fixed maturity securities during 1991-1995. This period includes the years before adoption, upon initial adoption, and after adoption of Statement of Financial Accounting Standards No. 115 (FAS I I 5 , "Accounting for Certain Investments in Debt and Equity Securities "). The second and more important objective of this study is to test two risk-based explanations for differences in investment classification decisions under FAS 115. Under this new standard, firms are required to classify fixed maturity investment securities into trading portfolios, available-for-sale portfolios, or held-tomaturity portfolios. These classification decisions determine whether these securities are recognized at fair value or historical cost. On one hand, the decision to classify securities as available for-sale rather than heldto-maturity (and thus apply fair value accounting) increases the timeseries volatility of key accounting numbers such as owners' equity and total assets, which may be costly for insurers with low tolerance for accounting volatility. On the other hand, the choice to classify securities as available-for-sale (and thus apply fair value accounting) reduces liquidity risk because the accounting standards (and SEC enforcement practices) limit management's ability to sell securities that are not recognized at fair value. The empirical analyses examine whether the security classification decisions of the sample property-liability insurers are associated with firm

2000, Accounting Horizons

2003, SSRN Electronic Journal

This paper provides for the first time a comparative study of three major banking crises in Norway (1899-1905, 1920-28 and 1988-92), and presents financial and macroeconomic data spanning more than 130 years. Financial sector development appears to be closely linked to booms and busts in economic activity during these years. The boom periods that preceded each of the three crises all have some common features: they were characterised by significant bank expansion, considerable asset price inflation and increased indebtedness. The non-financial sector increased its debt only slightly more than its income during the first two boom periods, but subsequent deflation increased its debt burden. A puzzle in the two first boom periods was that the commercial bank equity-to-totalassets ratio increased markedly. Nonetheless, the commercial banks were severely affected in the each subsequent bust. Possible explanations are provided, but this puzzle calls for more research. Altogether, a strong causal link between financial fragility and banking crises is suggested. The crises occurred in different institutional environments and monetary policy regimes, and the role of these is explored and policy lessons are drawn. In particular, the close link between monetary and financial stability is highlighted.

2016

This paper is a survey about comprehensive income and other comprehensive income. The paper identifies areas of research. Are the components added to net income to achieve comprehensive income truly useful and if so, for who? What are the most potentially useful areas for research? It consists of two parts: firstly, we provide a literature review around the subject "comprehensive income", and secondly we provide a review for each component of other comprehensive income.

2019, Trends Economics and Management

Purpose of the article: This study investigates the effect of historical cost accounting on the reported profit of a company, with an evaluation of current cost accounting as an alternative reporting method in a high-inflationary and volatile economy as experienced in Nigeria. Using secondary data gleaned from the annual reports and accounts of ten (10) manufacturing companies quoted in the industrial sector of consumer goods of the Nigerian Stock Exchange from 1996-2016. Methodology/methods: To test the formulated hypotheses, a multiple regression model was formulated comprising the depreciation charge, taxes and dividend as the independent variables while reported profits both at historical and current cost of the firm served as the dependent variables. The Ordinary Least Square (OLS) estimation technique was employed to ascertain the interrelationships between the variables. Scientific aim: This research is aimed at empirically investigating, by means of available statistics, the effect of historical cost accounting on the reported profit of a company during period of inflation. Findings: The study revealed that both historical cost and current cost accounting have significant effect on reported profit, as an increase in the depreciation charge, tax bills and dividends declared by firms will occasion a decrease in the reported profit. Conclusions: It is recommended that companies should prepare their financial reports using both historical cost and fair value (current cost) methods simultaneously, as this will allow the companies to ascertain the true financial position of their companies before declaring dividends and other benefits.

2008

The Securities and Exchange Commission today announced the panelists and agenda for its July 9 roundtable on fair value accounting and auditing standards.

Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia

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2018, Journal of economics and sustainable development

This study focused on the emergence of accounting theory from practice towards general accounting theory in corporate organization in Nigeria. It was carried out, using Guinness Nigeria PLC. The study is based on primary and secondary sources of data. Data were gotten from the audited financial statement of organization for a period of four years (2014-2017) through simple random sampling technique. Regression analysis is used to test the hypothesis for this study at 5 per cent level of significance. Findings revealed that there is a significant relationship between accounting theory and accounting practice in corporate organization. It is recommended that organization should be consistent with type of accounting theory adopted in preparation of their various accounting records, since there is proportional relationship between accounting theory and financial reporting. Keywords: Accounting Theory, Accounting Practice, Corporate Organizations, Financial Statement, Normative Accountin...

2013, Social Science Research Network

This paper is based on my presentation given as part of a panel discussion at the 2012 Annual Meeting of the American Accounting Association in August 2012 in Washington DC. To the other panellists' papers (Glover, 2013; Zeff, 2013b) I add a contrasting perspective from other countries (primarily the UK and the rest of Europe) that incorporates a variety of other actors and differing uses (or 'objectives') of financial accounting and reporting. I consider briefly in turn: the major actors; major external uses of financial reports; the 'rational institutional myths' that sustain the role of accounting standards; and the potential contributions both of research and of university accounting education. I argue that 'positive' and 'normative' research, reflecting a deep understanding of accounting's history, must continue to be complementary in the social engineering of better accounting standards and rules.

2010, Abacus

The Case for Deprival Valuea bac_310 111..119 At the beginning, we should note that although IASB/FASB now loosely talk of 'the measurement objective' this is conceptually confusing, as issues related to accounting measurement cannot be considered independently of the context of some accepted underlying objective for financial accounting and reporting, something with which the IASB and FASB are currently grappling as part of their conceptual framework (CF) revision. Major concerns with the current FASB/IASB approach to the CF include whether there is any likelihood of agreement on a single objective, given the lack of homogeneous users and uses. For example, the dilemma of 'stewardship' and other legally based uses (e.g., deriving from contracts and the need for 'settling up', which generally do require 'one number' to achieve closure) vs 'economic decision making' uses (where, as Geoff Whittington argues here, several numbers may be useful), still bedevils standard setting now as it has done for decades. And even if the relevance of a particular measure were agreed, different criteria of reliability appropriate for these different purposes might tip the balance. 1 Naively perhaps-as based on my own auditing experiences of long ago-the following ideas are based on several behavioural premises:

2006

Institute of Chartered Accountants in England & Wales ['ICAEW']), with support from Deloitte and KPMG, is gratefully acknowledged for the research project into life assurance accounting of which this work forms a part. Grant applications are managed by the Centre for Business Performance ['CBP']. We are also grateful for the helpful comments of the members of the Academic Panel of the UK

2011, Accounting and Business Research

2015, British Accounting Review

To help understand modern financial accounting theory ['FAT'] and its role in the development of finance and business, I consider two current mainstream histories of its development and offer a third alternative. The standard setters' version is that increasingly FAT is rationally derived from a basically coherent conceptual framework, currently focussed on 'comprehensive income' as measured by 'changes in assets and liabilities', in turn preferably measured at fair values. However, examination here of several recent FASB/IASB standards and exposure drafts shows that instead they unavoidably bear the marks of the history of a variety of now embedded practices that have shaped thinking about, and vested interests in, what is 'good accounting'. By contrast, some recent academic versions of history focus on how 'conservative', historical-cost based accounting principles have rationally evolved to provide an anchor on which to base appraisal of firms' and managers' performance, prospects and risks, and supply the kind of information that investors and other parties in the capital markets need to help overcome the information asymmetry between them and corporate managers. After analysing the limitations of this second type of history, I argue that even a brief genealogical examination of the conditions of possibility that have led to the growth and changes in accounting and auditing practices and discourses, and in the power-knowledge relations that they have engendered at different stages over the millennia of recorded history, suggests that their power has always been more that of 'institutional rationalised myth'. The twin rational myths of the objectivity of accounting and of auditing together provide the structure that offers the comfort necessary to enable the various agents in the modern, increasingly global, economy to undertake and finance the risks of acting 'at a distance' and across time. This modern, grammatocentric accountability increasingly extends throughout the institutions that coordinate modern societies, in the rising East as well as in the established West. Exploring how much of FAT is rational and reflects some objective 'economic reality' and how much is myth and is subjectively, socially constructed; and, again, how much might be improved and how much is intractable, are the major questions now for accounting, auditing and finance policy-making and research. This requires further detailed comparative international historical understanding of how accounting and auditing have variously operated, within businesses and other organisations and in shaping markets, across different countries and cultures.

2017, The Indonesian Accounting Review

This study tries to prove empirically the effect of leverage, size, liquidity and operating cash flows on the revaluation of fixed assets. It used a sample of all non-financial companies, which revalued assets in the periode of 2012-2015, at companies listed on Indonesia Stock Exchange with upward revaluation category. The analysis was done using Path analysis (PLS) without requiring classical assumption and normality test. The results show that leverage affects Asset revaluation, it proves that high leverage because the company to do revaluation of fixed assets, large companies tend to want to display earnings reports that are not too large to reduce their political costs, with asset revaluation, the value of depreciation is calculated Repeated and reduce the company's profit. Operating cash flows affect the revaluation of fixed assets on the grounds that the company requires funds to pay its obligations as well as in revaluation assets cost a great deal for the appraisal servi...

2017

The IPSAS CP asks the following questions in its REQUEST FOR COMMENTS. The responses prepared by the Task Force IRSPM A&A SIG, CIGAR Network and EGPA PSG XII are presented hereafter. The IRSPM A&A SIG, CIGAR Network and EGPA PSG XII are three research networks that focus on Public Sector Accounting. The Task Force is made up of 16 researchers from these networks. The responses being presented are based on an analysis of the Consultation Paper, the IPSASB Conceptual Framework, relevant IPSAS, and various published research papers on the subject. Following various meetings and discussions, the members of the Task Force have reached the following common conclusions and suggestions. The views expressed in this document represent those of the members of the Task Force and not of the whole research community represented by the networks, and neither of the Institutions/Universities with which they are affiliated. Comments and suggestion considering the IPSASB CP for Accounting for Revenue and Non-Exchange Expenses Core assumptions We are of the opinion that, in general, public sector entities require public sector specific principles and standards that properly accommodate public sector specificities. As such, when public sector transactions resemble those taking place in the private sector, then principles and standards may be kept as aligned as possible. However, for public-sector-specific transactions, we are in favour of standards that are not adapted artificially from private sector accounting and we think there is a need to seek options that best fit the public sector. This core thesis underpins our proposals and recommendations herein. Moreover, in our view, disregarding the revenue recognition principle may produce unwanted effects as it would generate "technical" surpluses and deficits. Although these effects would be neutral taking a longterm perspective, they may prove misleading for constituents and other users on a year-by-year basis. For example, constituents would not easily understand that a deficit is reported simply because funds that were intended to be used in the year had already been recognised as revenue in previous years. Preliminary View 1 (following paragraph 3.8) The IPSASB considers that it is appropriate to replace IPSAS 9, Revenue from Exchange Transactions, and IPSAS 11, Construction Contracts, with an IPSAS primarily based on IFRS 15, Revenue from Contracts with Customers. Such an IPSAS will address Category C transactions that: (a) Involve the delivery of promised goods or services to customers as defined in IFRS 15; and (b) Arise from a contract (or equivalent binding arrangement) with a customer which establishes performance obligations. Do you agree with the IPSASB's Preliminary View 1? If not, please give your reasons.