Changes in the measurement of fair value: Implications for accounting earnings

Abstract

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Value relevance of biological assets under IFRS

“…These fair value models are based on specific parameters and assumptions that could lead to management manipulation (Mala, & Chand, 2012;Hitz, 2007;Ball, 2006). In fact, regarding fair value measurement, Fargher, & Zhang (2014) state that when accounting standards allow managerial discretion, this opportunity may be in practice used unscrupulously by managers possibly compromising the relevance of financial reporting.…”

The value relevance of fair value and historical cost measurements during the financial crisis

“…Our results may be informative to regulators and standard-setters, since FV accounting is a longstanding major agenda item of both the FASB and the IASB 6 While not directly relevant to our study, the extant literature has also considered: the three-level hierarchy for FV measures (e.g. Fargher and Zhang, 2014;Yao et al, 2018;Liao et al, 2020); FV accounting standards (e.g. Bewley et al, 2018;Nobes, 2020); and causes and consequences of the crisis (e.g.…”

The Value Relevance of International Accounting Standard Implementation and Audit Quality

“…This condition is known as agency conflict due to information asymmetry. A study conducted by Fargher & Zhang (2014) states that the use of assumptions in fair value measurement may increase income management and reduce information value of income.…”

“…Previous studies conducted by Dhaliwal et al (1998) and Fargher & Zhang (2014) find a fact that OCI has a relatively small effect on stock return and tends to have no value relevance. On the other hand two other studies state differently.…”