Fair Value Measurement in Financial Reporting

Alexander, David; Bonaci, Carmen Giorgiana; Mustata, Razvan V.

doi:10.1016/s2212-5671(12)00124-4

Cited by 18 publications

(8 citation statements)

References 11 publications

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“…This descriptive research method is also often called the survey method. This study intends to obtain a description or description of the influence of the biological asset accounting policy implications, good corporate governance practices, knowledge about renewable energy and company size on financial performance (Alexander et al, 2012). This research will be conducted in agricultural sector companies in Indonesia.…”

Section: Methodsmentioning

confidence: 99%

The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge About Renewable Energy

Lestari¹,

Zarkasyi²,

Farida³

2020

IJEEP

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High financial performance is the primary goal of all companies, including agricultural companies. In practice, the impact caused by various problems related to accounting policies of biological assets, principles of good corporate governance, knowledge about renewable energy and size of the company. This study aims to prove empirically whether there is an influence of biological asset accounting policy implications, good corporate governance practices and company size on financial performance along with the moderating role of knowledge about renewable energy in agricultural sector companies. Research data were collected through questionnaire instruments, face-to-face interviews and group discussion forums which were conducted in several places in Indonesia by sampling with non-probability sampling. Data were analyzed using structural equation model (SEM). The results showed that the implications of biological asset accounting policies, good corporate governance practices and company size had positive effects on financial performance and knowledge about renewable energy is playing a moderating role among the links. The plantation and forestry sector which is the unit of analysis is a limitation of this study because the agricultural industry includes not forests and gardens, but livestock and fisheries are also included in those who have biological transformed assets.

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Section: Methodsmentioning

confidence: 99%

The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge About Renewable Energy

Lestari¹,

Zarkasyi²,

Farida³

2020

IJEEP

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“…However, the link is complicated, since there is the subjective aspect to managerial information. As discussed by for example Alexander et al (2012) it could be difficult to see how managerial assumptions in the calculation of fair values could ever be fully objective. This creates an interesting and partly different tension between uniformity and uniqueness in that the same measure could be seen as providing uniformity as a single and uniform accounting model that could be applied to all financial instruments.…”

Section: Tensions and Conflicts Between Uniformity And Uniquenessmentioning

confidence: 99%

“…Alexander et al (2012) discuss how respondents from companies answered in the open due process of accounting standard setting with regard to financial instruments and fair value accounting. One point appeared to be a concern about managers not using internal reporting objectively when information for fair value calculations is to be given.…”

Section: Financial Instruments and Effects On Reporting And Analysismentioning

confidence: 99%

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Financial Accounting and Management Control

Nilsson

Stockenstrand

2015

Contributions to Management Science

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“…Also in China, Zhou et al (2009) found that the improvements in the quality of accounting information prepared in accordance with IFRS may be limited if it provides more choices to managers without a concurrent stricter enforcement mechanism. In Romania, Alexander et al (2012) investigated the relevance of FV accounting and concluded that although relevant to investors, it does not provide useful information to other users. Also, Filip and Raffournier (2010) found that the association between accounting earnings and stock returns in Romania is comparable to the levels reported by conducted studies on more mature markets.…”

Section: Introductionmentioning

confidence: 99%

Relevance of fair value of Brazilian banks securities in the financial crisis

Chiqueto

Silva

Colossal

et al. 2015

International Journal of Emerging Markets

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Purpose – The purpose of this paper is to seek to clarify whether the fair value (FV) of Brazilian banks securities is relevant for investors in times of crisis. Design/methodology/approach – The information gathered for 14 quarters, 2007-2010, of a cross-sectional sample of banks was used for the purpose of explaining the value of shares based on amortized cost and the FV of securities, the book value of equity and the financial crisis. The return on shares was regressed based on the realized and unrealized gains and losses on securities, adjusted income and the crisis. Findings – The results indicated that the FV is relevant. The results also corroborated the hypothesis that, during the crisis, there was a decrease in the relevance of the FV of securities since the accounting practices adopted in Brazil did not specify how to estimate FV, as required by SFAS 157, neither did they require disclosure of the FV hierarchy, as established International Financial Reporting Standards (IFRS) 7. It was concluded that FV has incremental explanatory power over equity, but not over amortized cost. Furthermore it possible to conclude that quarterly unrealized gains and losses on securities are not relevant, which could be explained by possible tax planning practices, since, in Brazil, the mark-to-market adjustment of securities is only deductible, or taxable, when settled. However, the realized and unrealized gains and losses are value-relevant during the period of financial crisis. Originality/value – This study provides empirical evidence about the relevance of FV during the financial crisis in Brazil.

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Fair Value Measurement in Financial Reporting

Cited by 18 publications

References 11 publications

The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge About Renewable Energy

The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge About Renewable Energy

Financial Accounting and Management Control

Relevance of fair value of Brazilian banks securities in the financial crisis

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