Fair Value Empirical Studies: An Overview On Acconting Research Literature

Bonaci, Carmen Giorgiana; Tiron-Tudor, Adriana

doi:10.29302/oeconomica.2011.13.2.1

Cited by 6 publications

(4 citation statements)

References 20 publications

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“…The paper applies literature review methodology to assess what has been published within accounting research literature on FVA, particularly by investigating studies that discuss the fair value approach in relation to the financial crisis. Similar to other researchers (Matis and Bonaci, 2008, 2011; Bonaci and Tudor, 2011), the present study develops a critical description of accounting research literature on the role of FVA in the financial crisis, considering studies that use an empirical approach or a theoretical one. Making such an analysis that focuses on the research literature, we do not specifically aim to discover new points of view, but we try to suggest groundwork and a theoretical framework to ease the conceptualization and the assessment of the role of FVA.…”

Section: Methodsmentioning

confidence: 83%

Fair value accounting and the financial crisis: a literature-based analysis

Menicucci

Paolucci

2016

JFRA

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Purpose The aim of this paper is to review the main results of accounting research literature examining the role of fair value accounting (FVA) within financial crisis. This research analyzes theoretical and empirical studies on the controversial topic about FVA and its alleged pro-cyclicality in the context of the financial crisis to offer solid reflections for improving the fair value research agenda. Design/methodology/approach This paper consists of a descriptive literature review. Theoretical and empirical research studies were investigated and then systematized in a framework to guide a literature-based analysis and critique of the relevant literature published about this topic. Findings The review reveals that there has been only a limited amount of research into the role of FVA within the financial crisis. This topic has not been researched extensively, and there is no empirical evidence that FVA caused the financial crunch and the subsequent financial crisis. Research limitations/implications The restricted amount of literature that directly deals with FVA in the context of the financial crisis is the main limitation of this paper. The specificity of the theme narrows the coverage. However, the adopted research methodology enabled the main contributions concerning this issue to be collected, to realize a concise and comprehensive portrait of the debate surrounding FVA and the financial crisis. Practical implications This paper can be of use to both researchers and practitioners interested in investigating strengths and weaknesses of the fair value concept for accounting purposes. The paper sets out the main findings of the academic literature and identifies future avenues of theoretical and practical research which may support standard setters to draw up improved accounting regulation. Originality/value Few existing studies consist of a literature review that examines theoretical and empirical researches on the influence of FVA on the financial system. This review offers a comprehensive overview on research literature concerning the responsibility of FVA in causing the financial crisis. The main contribution of this paper relates to further understanding the role and effects of accounting matters concerning fair value in a broad sense within the context of the financial crisis.

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Section: Methodsmentioning

confidence: 83%

Fair value accounting and the financial crisis: a literature-based analysis

Menicucci

Paolucci

2016

JFRA

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“…Their findings align with Glover et al 's (2016) earlier submission that lack of available data to independently value the FV measurement, including third parties who were unwilling or unable to provide the necessary detail regarding the underlying assets and assumptions used in the valuation, is a major challenge. After analysing the application of FV to the measurement of financial instruments, using a sample of banks that owned derivatives, Ahmed et al (2006) cited in Bonaci and Tudor (2011) argue that the appropriate valuation of derivatives depends on the availability of information. Mwape (2010) reports that one of the major challenges of adopting IFRS in Zambia is the lack of an active market where markets prices can be obtained to comply with IFRS 13.…”

Section: Literature Reviewmentioning

confidence: 99%

Post-implementation challenges of fair value measurement (IFRS 13): some empirical evidence

Oyewo

2020

AJEMS

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PurposeConsequent on the widespread of fair value (FV) accounting with the coming into effect of International Financial Reporting Standard (IFRS) 13, this study investigated the post-implementation challenges of FV measurement from the perspective of auditors in Nigeria.Design/methodology/approachData collection was through a structured-questionnaire administered on auditors from diverse audit firm backgrounds in terms of size, international affiliation and global presence. Statistical techniques such as cluster analysis, factor analysis and ANOVA were applied to analyse data obtained from 277 respondents.FindingsIt was observed that the severest challenge of FV measurement bothers on the paucity of information for valuation of items. The magnitude of the challenges of applying FV measurement in various industry sectors appears similar. Although audit firm attributes affect perception on the challenges, there is concurrence among auditors that manipulation of values of assets/liabilities with no market price during estimation, leveraging on non-availability of market information on assets/liabilities by managers to manipulate financial statements, inappropriateness/non-compliance of valuation methods with IFRS 13, and low level of awareness among preparers of financial reports are notable post-implementation challenges of FV measurement.Practical implicationsConsidering that the adoption of IFRS 13 impliedly places responsibilities on countries applying the standard to develop institutional structures that facilitate the valuation of items using FV measurement, it seems the establishment of such apparatus may be a sine qua non for fully realising the socio-economic benefits of applying FV accounting.Originality/valueThe study contributes to knowledge by exposing the practical challenges of FV measurement and accounting estimates typical of a developing country that has fully implemented international accounting standards. Moreover, findings from this study could be compared with the result of investigations conducted in other jurisdictions to gain a deeper and wider insight into the challenges of FV measurement with a view to proffering solutions to the post-implementation challenges of IFRS 13.

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“…There are very few studies that carry out a comprehensive review of fair value literature, analysing both the different research lines and describing the main findings of the authors. Mention should be made of Fortin (2005), Bonaci and Tudor (2011), Menicucci and Paolucci (2016), Bona et al (2017), and Sapkauskiene and Orlovskij (2017). However, they generally focus just on one aspect (on one research line), and do not carry out a comprehensive review of the literature.…”

Section: Introductionmentioning

confidence: 99%

The Use of Fair Value Measurement in Financial Reporting: A Literature Review

Ramírez¹,

Díaz²

2019

SAE

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Desde hace unos cuarenta años, el valor razonable se ha venido utilizando cada vez más en las normas emitidas por el IASB y por el FASB. En este sentido, ha existido un gran debate con relación a la relevancia y a la fiabilidad del valor razonable como método de valoración. En principio, los marcos conceptuales del IASB y del FASB se basan en el Paradigma de la Utilidad, y el valor razonable debería aplicarse si ofrece información relevante a los inversores. En el presente artículo revisamos las investigaciones previas en torno al valor razonable (centrándonos en el área de instrumentos financieros y la relevancia del valor razonable). Hemos clasificado los artículos en líneas de investigación y hemos analizado principales conclusiones obtenidas en cada línea. Los autores concluyen que el valor razonable es el modelo que mejor refleja las actividades de gestión de riesgo. La información que ofrece el valor razonable es generalmente relevante para los inversores. La evidencia es mayor en los valores razonables clasificados en los Niveles 1 y 2.

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Fair Value Empirical Studies: An Overview On Acconting Research Literature

Cited by 6 publications

References 20 publications

Fair value accounting and the financial crisis: a literature-based analysis

Fair value accounting and the financial crisis: a literature-based analysis

Post-implementation challenges of fair value measurement (IFRS 13): some empirical evidence

The Use of Fair Value Measurement in Financial Reporting: A Literature Review

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