Discussion of Consequences and Institutional Determinants of Unregulated Corporate Financial Statements: Evidence from Embedded Value Reporting

2011 ◽  
Author(s):  
Luzi Hail
Keyword(s):  
Financial Statements ◽  
Embedded Value ◽  
Institutional Determinants ◽  
Value Reporting

Current Developments in Embedded Value Reporting

2005 ◽  
Vol 11 (3) ◽  
pp. 407-479 ◽  
Author(s):  
P. J. L. O'Keeffe ◽  
A. J. Desai ◽  
K. Foroughi ◽  
G. J. Hibbett ◽  
A. F. Maxwell ◽  
...  
Keyword(s):  
Discount Rate ◽  
Future Development ◽  
Embedded Value ◽  
Stochastic Techniques ◽  
Embedded Options ◽  
Value Reporting

ABSTRACTThis paper reviews the developments in reporting of traditional embedded value and summarises some of the reasons why this is now undergoing change. It considers the purpose of an embedded value calculation and the effect of differing attitudes to risk. It comments on the recently developed European Embedded Value Principles and sets out the main areas where scope remains to apply judgement.The paper proposes the market-consistent embedded value framework as a way forward to help provide guidance in some of these areas, in particular on the choice of discount rate and on calibration of stochastic techniques used to value embedded options and guarantees. The paper recognises that market-consistent embedded values are in relative infancy and sets out areas for possible future development.

Profit, capital and value in a proprietary life assurance company. A discussion paper

1994 ◽  
Vol 121 (2) ◽  
pp. 285-361 ◽  
Author(s):  
C. D. O'Brien
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Rate Of Return ◽  
Discussion Paper ◽  
Life Assurance ◽  
Embedded Value ◽  
Return On Capital ◽  
Acquisition Costs ◽  
The Law ◽  
Value Reporting

AbstractThe paper first considers concepts of profit in economics, accountancy and the law relating to financial reporting. It then considers the nature of life assurance business and suggests the accounting standards appropriate to life assurance companies which would ordinarily result in accounts showing a ‘true and fair view’. An analysis of the E. C. Insurance Accounts Directive shows that there may be circumstances where its provisions conflict with such standards.The paper considers each of the statutory solvency method, embedded value reporting and the accruals method, and the author finds all of them to be inconsistent with accounting standards and the requirements of the Directive.The author puts forward the ‘Earned Profits’ method, which applies accountancy principles in determining assets and liabilities and takes credit for outstanding revenue matching acquisition costs. This approach is then used in analysing the value of a life assurance company and measuring the rate of return on capital.

The informativeness of embedded value reporting to stock price

2021 ◽  
Author(s):  
Derrick W. H. Fung ◽  
David Jou ◽  
Ai Ju Shao ◽  
Jason J. H. Yeh
Keyword(s):  
Stock Price ◽  
Embedded Value ◽  
Value Reporting

An empirical analysis of capital assets condition ratio in local governments: the case of Florida counties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoheng Wang ◽  
Can Chen
Keyword(s):  
Local Governments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Financial Statements ◽  
County Government ◽  
Government Investment ◽  
Content Type ◽  
Capital Assets ◽  
Institutional Determinants ◽  
The Government

PurposeThe main purpose of this paper is to examine the political, economic and institutional determinants of capital assets condition ratio in American local governments using government-wide financial statements.Design/methodology/approachBased on capital assets data from the period of 2011–2016 for the 66 Florida counties as reported on their government-wide financial statements, the authors use a panel two-way fixed effects estimation and a dynamic panel generalized method of moments estimation.FindingsThe authors find that social-economic factors, fiscal capacity and democratic voters explain the capital assets condition ratio in Florida county governments.Research limitations/implicationsThe major findings of this study may only apply to county government in one single state. It may raise the issue of the external validity of our research. It provides policy recommendations for local public officials to maintain and upgrade their capital assets.Originality/valueThe study utilizes a new approach of capital assets condition ratio to measure county government investment in capital assets based on the government-wide financial statements.

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