Mandatory IFRS Adoption, Fair Value Accounting and Accounting Information in Debt Contracts

2013 ◽  
Author(s):  
Ray Ball ◽  
Xi Li ◽  
Lakshmanan Shivakumar
Keyword(s):  
Accounting Information ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Debt Contracts ◽  
Ifrs Adoption

The role of using fair value on relevance and representation faithfulness of accounting information in accordance with the Common Conceptual Framework (FASB-IASB)

2019 ◽  
Vol 118 (12) ◽  
pp. 142-165
Author(s):  
Dr. Nada Kaki Bira ◽  
Layla Naji Majeed Al Fatlawi
Keyword(s):  
Conceptual Framework ◽  
Accounting Information ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Global Trend ◽  
The Common ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The global trend towards the use of fair value accounting is increasing, so the current study aimed to maximize the impact of fair value application on achieving relevance and representation faithfulness of accounting information in accordance with the common conceptual framework. To achieve the objective of this study, the researcher has determined in the theoretical framework the relationship of fair value with the characteristics of relevance and representation faithfulness of accounting information and the extent of achieving these characteristics, as well as conducting a field study by preparing a questionnaire distributed to a sample of academics (50) and auditors (50) with a total number of selected participants (100) of academics and auditors.

scholarly journals Fair value accounting: information or confusion for financial markets?

2014 ◽  
Vol 20 (1) ◽  
pp. 559-591 ◽  
Author(s):  
Michel Magnan ◽  
Andrea Menini ◽  
Antonio Parbonetti
Keyword(s):  
Financial Markets ◽  
Accounting Information ◽  
Fair Value ◽  
Fair Value Accounting

scholarly journals Fair Value Accounting And Financial Stability – Based On The Adoption

2016 ◽  
Vol 32 (6) ◽  
pp. 1825
Author(s):  
Chae Chang Im ◽  
Ahrum Choi ◽  
Sungtaek Yim
Keyword(s):  
Financial Stability ◽  
Market Price ◽  
Relevant Information ◽  
Fair Value ◽  
The Other ◽  
Financial Statement ◽  
Fair Value Accounting ◽  
Financial Firms ◽  
Ifrs Adoption ◽  
Current Market Price

Fair value accounting refers to the accounting method which an asset or liability is estimated based on the current market price, so called fair value. Under the fair value accounting, it is more difficult for managers to hide bad information, because the value of an asset or liabilities is re-estimated periodically to reflect the changes in fair value in the market. In this case, firms’ financial stability will be increased. On the other hand, fair value accounting can intensity the volatility of the numbers in the financial statement, which leads to decreases the financial stability. This papers empirically examines the effect of the fair value accounting on the financial stability based on the IFRS adoption in Korea. Using the non-financial firms listed in KOSPI and KOSDAQ from 2000 to 2013, we find that the expansion of fair value accounting increases financial stability. The results support the argument that fair value accounting prohibits managers from hiding bad information, rather it enforces the disclosure of value-relevant information to the investors. The results are consistent with a battery of robustness checks. Thus, the overall results show that the expansion of fair value accounting increase financial stability. 

Sign in / Sign up

Export Citation Format

Share Document