Comparability: An analytic examination

Revsine, Lawrence

doi:10.1016/0278-4254(85)90009-2

Cited by 11 publications

(2 citation statements)

References 3 publications

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“…Revsine (1983, in an interesting analytical framework, examines the relative comparability of "historical cost" versus "current cost" balance sheet numbers. Revsine (1985) notes that timing differences of asset purchases across firms are a major source for the noncomparability of HCA data, and suggests the following three reasons for the noncomparability: (1) general change in purchasing power, (2) exogenous demand shifts (i.e., change in the price structure), and (3) depreciation methods (p. 7).…”

Section: Expected and Achievable Comparabilitymentioning

confidence: 99%

Harmonization, Comparability, and Fair Value Accounting

Barlev

Haddad

2007

Journal of Accounting, Auditing & Finance

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In this paper, we focus on the relationships between international accounting harmonization (IAH) and the paradigm of Fair Value Accounting (FVA). Accountants rely on the accounting concept of comparability in defining IAH and are in agreement that a set of internationally implemented Generally Accepted Accounting Principles (GAAP) is required for a "complete harmonization." We argue, however, that a second requirement4 common denominator for measuring, recording, and reporting business transactions, assets, liabilities, and equitieH's necessary to reach a state of a "complete IAH." We explain the logic behind the requirement of a common denominator and assert that I A H is feasible under the paradigm of FVA, but not under that of Historical Cost Accounting (HCA). This is true because the concept of fair value, but not historical cost, provides the common denominator necessary for a meaningful comparison of accounting data. We then argue that the paradigm of FVA acts as a catalyst in a harmonization cycle: FVA propels I A H and IAH provides more relevant information that may foster the eficiency of global markets, which improves the quality of the FVA figures. The authors acknowledge the helpful and constructive comments of an annonimous referee. Professor Barlev acknowledges financial support from the Krueger Center for Finance and the Accounting Center at the Hebrew University of Jerusalem, Israel.

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Section: Expected and Achievable Comparabilitymentioning

confidence: 99%

Harmonization, Comparability, and Fair Value Accounting

Barlev

Haddad

2007

Journal of Accounting, Auditing & Finance

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“…Barlev and Haddad (2007) in 2007 have promoted this one. Revsine (1985) in 1985 have claimed that "the resource allocation depends on the comparison of the investment alternatives", while Radebaugh, Gray, and Sidney (1997) in 1997 and have considered the efficiency level of national resources utilization and international wealth allocation.…”

Section: Literature Review Data Assumptions and Research Methodsmentioning

confidence: 99%

Historical Cost Accounting and International Accounting Harmonization

Cristea¹

2017

PROSOC

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The relationship between international accounting harmonization and fair value accounting is one biunivocal: fair value accounting has the effect of catalyst for international accounting harmonization generating relevant information required to the quality of fair value accounting figures. Management Accounting is focused on the historical cost. This is highlighted in the revaluation: the notes must be submitted separately for each item in the balance of nature revalued property and equipment, the following information: the value of assets at historical cost and revalued amount cumulative value adjustments; or value at the balance sheet date of the difference between the unrealized gains and historical cost accounting and the cumulative amount of the additional value adjustments.

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The demand for regulation of financial disclosures: The case of the insurance industry

Gaa

Krinsky

1988

J Bus Ethics

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Comparability: An analytic examination

Cited by 11 publications

References 3 publications

Harmonization, Comparability, and Fair Value Accounting

Harmonization, Comparability, and Fair Value Accounting

Historical Cost Accounting and International Accounting Harmonization

The demand for regulation of financial disclosures: The case of the insurance industry

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