Dialogue with standard setters

Fiume, Raffaele

doi:10.3280/fr2012-004007

Cited by 2 publications

(1 citation statement)

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“…Taking into consideration the exclusion of BCUCC from the scope of IFRS 3, it is not surprising that the BCUCC and methods used to account for them also became the subject of research (Biancone, 2013;Fiume et al, 2015;Janowicz, 2017;2018;Küting and Wirth, 2020). Some research aims to compare IFRS and national regulations, an example of which may be the comparison drawn between Chinese GAAPs and IFRS (Heng and Noronhac, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience

Janowicz¹

2021

ERSJ

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Purpose:The assessment of the scope and quality of disclosures about BCUCC, which are excluded from the scope of IFRS, published by Polish public companies in their annual financial reports prepared following IFRS. Design/Methodology/Approach: The research uses qualitative and quantitative methods. The research methodology was based mainly on critical analysis of the literature on the subject, quantitative methods, content analysis of financial statements, and synthesis of results. Findings: Most Polish public companies that did not account for BCUCC using IFRS provided at least minimal scope of disclosures necessary for users of financial information to decide the effects that BCUCC had on the information presented in the financial statement. Companies that applied the Accounting Act to substitute for the lacking IFRS solution related to BCUCC provided a higher level of disclosure than other companies. Practical Implications: The use of national accounting regulations may provide a better quality of disclosures about BCUCC. Originality/Value: This paper provides insight into how the problem is dealt with in practice and may be used to form a commentary on the current IASB project focusing on BCUCC.

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Section: Literature Reviewmentioning

confidence: 99%

Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience

Janowicz¹

2021

ERSJ

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The value relevance of the fair value hierarchy. Empirical evidence from the European Union

Mechelli¹,

Sforza²,

Stefanoni³

et al. 2018

Financial Reporting

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This paper investigates the value relevance of the fair value hierarchy disclosed for financial instruments through a sample of 97 financial entities listed over the period 2011-2016 in the stock markets of 23 European countries. Its main objectives are threefold. First, by analysing the European setting, the paper means to study the value relevance of the fair value hierarchy to judge the choice of the International Accounting Standard Board (IASB) to extend the disclosure of the hierarchy to all the assets and liabilities. Second, the paper aims to evaluate the choice of abandoning management intent as a criterion for the classification and measurement of financial instruments investigating the effect that such an intent has on the value relevance of the fair value hierarchy. Finally, by studying the effect that exposure to risks has on the value relevance of the fair value hierarchical levels, the paper plans to investigate the implications that the disclosure of the hierarchy could have on the rules of Basel 3 capital adequacy. Formulating three different research hypotheses, the findings validate them providing evidence that the value relevance of fair value measurement depends on the source of inputs used to estimate fair value and that both management intent and the risk intensity of the asset book only affect the value relevance of the less reliable fair value estimates. These results are useful for standard setters and regulators. Actually, for the investors decisions, they suggest the importance of disclosing the fair value hierarchy for all the assets and liabilities as required by IFRS 13, as well as the advantage of replacing in IFRS 9 the management intent criterion with the business model test and the characteristics of the instruments for the classification and measurement of financial assets. For the future, the findings suggest the opportunity to introduce filters within the common equity tier 1 for the less reliable fair value estimates. This paper's current and future implications for standard setters and regulators are to avoid earnings management and capital management behaviour possibly affecting the quality of financial reporting.

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Dialogue with standard setters

Cited by 2 publications

References 0 publications

Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience

Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience

The value relevance of the fair value hierarchy. Empirical evidence from the European Union

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