The Effect of Fair Value Accounting on Jordanian Investment Properties

Ahmad, Fadia Burhan Alhaj; Aladwan, Mohammad

doi:10.5430/ijfr.v6n4p99

Cited by 3 publications

(1 citation statement)

References 20 publications

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“…However, as we state in the Introduction of our paper, due to the lack of relevant scientific information sources, we are unable to compare our findings and to identify similarities and differences, and in this context to structure and generalize our conclusions. Only older studies are available [34][35][36][37], and here we can state that the findings in these studies basically copy our findings, but we must take into account the time factor, which can have a significant influence on the interpretation of the results.…”

Section: Discussionsupporting

confidence: 72%

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Škoda,

Bočková,

Guzoňová

2023

HighTech. Innov. J.

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IFRS 13 had its mandatory implementation on January 1st, 2013. The new accounting standard, which represents one step closer to harmonization between U.S. GAAP and IFRS, aims to eliminate inconsistencies in fair value measurement and its related disclosures through the introduction of new reporting requirements, specifically for assets and liabilities with no active markets. Although these demands also encompass information concerning financial instruments, our focus was on the disclosure changes related to the fair value of investment properties, previously regulated solely by IAS 40. As investment properties comprise the majority of assets in the real estate industry, this sector was further examined. Through a statistical analysis of the sample companies’ annual reports for the periods immediately before and after the implementation of IFRS 13, the purpose of our descriptor-explanatory study was to investigate the level of compliance with IFRS 13 fair value disclosure requirements for investment properties in real estate companies in Europe. In order to answer this question, we first scrutinized the level of compliance with the new disclosure requirements brought up by the standard and then, intermediated by an adaptation of the model developed by Beretta & Bozzolan (2008), measured the disclosure quality for both periods considered. After data collection and analysis, our findings reveal that IFRS 13 does affect the disclosure quality of investment properties in real estate companies in Europe. Overall compliance is very high, while disclosure quality has increased since the implementation of IFRS 13. As a way to further broaden the research related to the more extensive disclosure requirements under IFRS 13, we suggest additional studies be undertaken where the point of view of the real estate companies could be explored. Moreover, it would be interesting to investigate whether the increased number of disclosures, both in relation to quantity and quality, is relevant from an analyst’s standpoint. Doi: 10.28991/HIJ-2023-04-03-04 Full Text: PDF

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Section: Discussionsupporting

confidence: 72%

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Škoda,

Bočková,

Guzoňová

2023

HighTech. Innov. J.

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Value Relevance Das Propriedades Para Investimento No Setor De Exploração De Imóveis

Batista

Paulo

2017

REVISTA REUNIR

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A adoção do CPC 28 nas empresas que possuem ativos reconhecidos como Propriedades para investimento (PPIs) incorreu em novos procedimentos contábeis, tanto no sentido de reconhecer em separado esses ativos, quanto pela flexibilidade do método de mensuração, permitindo a escolha entre valor justo e custo histórico. Nesse sentido, esse trabalho se propôs a investigar, sob a perspectiva do value relevance, a relevância e a confiabilidade das mensurações das PPIs, avaliando se existe evidências de diferenças nesses atributos conforme o método de mensuração adotado, utilizando para tanto o modelo de Ohlson (1995) adaptado. Trabalhou-se com as empresas do setor de Exploração de Imóveis, listadas na BM&FBovespa, no período de 2010 a 2016. Verificou-se então que as PPIs apresentaram value relevance para todo o período analisado, independentemente se reconhecidas pelo valor justo ou custo histórico. No entanto, os resultados evidenciaram que as PPIs reconhecidas pelo valor justo apresentam baixa confiabilidade em comparação as PPIs reconhecidas pelo custo histórico e que o valor justo divulgado em notas explicativas das PPIs reconhecidas pelo custo se mostraram relevantes e melhoraram a associação dos números contábeis com o valor de mercado, embora também apresentem baixa confiabilidade, e que o resultado líquido afetado pela variação do valor justo não apresentou value relevance. Observou-se ainda que o valor justo resulta em informações mais relevantes, apesar da baixa confiabilidade, e que a variação ao valor justo reconhecidas no resultado impactam negativamente do value relevance do lucro contábil.

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Factors affecting applied perception and applicability of fair value accounting: The case of construction firms in Vietnam

Thanh

Hải

Van

et al. 2023

Problems and Perspectives in Management

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This study determines and measures the factors affecting the perception and applicability of fair value accounting by related personnel in enterprises, including business owners, managers, accountants, and internal auditors. At the same time, it analyzes the relationship between applied perception and the applicability of fair value accounting. 808 respondents, working in 350 construction enterprises in Vietnam, participated in the survey. This study combines qualitative and quantitative methods using SPSS and AMOS 20 with different techniques and structural equation modeling. The study results show that the applied perception significantly affects the applicability of fair value accounting at construction enterprises in Vietnam. Besides, eight different factors influence the applied perception of fair value accounting. Notably, six factors positively influenced the applied perception, including usefulness, reliability, cost-benefit relationship, size of the enterprise, qualification of accountants, and independent auditors. In contrast, two factors, legal matters and tax pressure, negatively affected the applied perception. This study suggests that managers of Vietnam’s construction enterprises develop solutions to improve the applied perception and applicability of fair value accounting, thereby perfecting the system accounting and improving business performance. AcknowledgmentThis study is conducted within the framework of the doctoral project subject to Decision No. 1407/QD-ĐHDT dated May 22, 2020, Duy Tan University, Vietnam. The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.

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The Effect of Fair Value Accounting on Jordanian Investment Properties

Cited by 3 publications

References 20 publications

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

European Real Estate Properties Valuation: Ten Years After Adopting IFRS 13

Value Relevance Das Propriedades Para Investimento No Setor De Exploração De Imóveis

Factors affecting applied perception and applicability of fair value accounting: The case of construction firms in Vietnam

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