Fair Value Cost Measurement Practice: Case Study Volvo Trucks

PurposeThis article is a reply to “On theoretical engorgement and the myth of fair value accounting in China” Nobes (2019) from the authors of “Adaptability to fair value accounting in an emerging economy: A case study of China's IRFS convergence” (Peng and Bewley, 2010) and “The Winding Road to Fair Value Accounting in China: A Social Movement Analysis” (Bewley et al., 2018).Design/methodology/approachThis article engages directly with the arguments of the criticism.FindingsThis article argues that the author of the commentary misunderstands the purpose, content and findings of both papers. By providing only a narrowly focused technical analysis of the new Chinese accounting standards, the author fails to see that their qualitative research approach reveals important, complex social and political factors at play in China's attempts to adopt modern international accounting principles. The commentary expresses a view that accounting is a neutral technology that needs only to be clearly defined and enumerated to be correctly implemented, whereas this research takes a much broader and deeper perspective. The authors seek to understand how China was able to successfully adopt fair value accounting standards in 2006, whereas an earlier attempt to introduce fair value in 1998 had led to abuse of fair value measurements and the eventual repeal of fair value regulations in 2001.Practical implicationsThis article helps clarify the purpose of qualitative accounting research, the role of theory in such research and the usefulness of theory in describing and explaining empirical case facts related to changes in accounting standards, particularly in an international context.Originality/valueThis article contributes to a better appreciation of qualitative accounting research.

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Triple Bottom Line Accounting and Energy-Efficiency Retrofits in the Social-Housing Sector: A Case Study

Accounting and the Public Interest ◽

10.2308/apin-10359 ◽

2013 ◽

Vol 13 (1) ◽

pp. 105-131 ◽

Cited By ~ 2

Author(s):

Kathryn Bewley ◽

Thomas Schneider

Keyword(s):

Energy Efficiency ◽

Social Housing ◽

Quantitative Methods ◽

Triple Bottom Line ◽

Fair Value ◽

Data Availability ◽

Housing Sector ◽

Bottom Line ◽

The Social

ABSTRACT This paper reports the findings of a case study conducted to learn about the information, actors, actions, and processes involved in energy-efficiency investment decisions in the social-housing sector. These decisions draw on environmental, social, and economic factors, which are studied from a “triple bottom line” (TBL) accounting perspective. The quantitative methods we use rely on Levels I, II, and III fair-value measures similar to those used in financial accounting. The qualitative methods rely primarily on interviews conducted and transcribed by the researchers. Our main findings show that a pure financial bottom-line approach would not fully indicate the overall desirability of the type of energy-efficiency investment undertaken in this case. By factoring in other quantitative and qualitative outcomes drawn from the research methods applied, a different conclusion may be reached. Data Availability: Available upon request from the authors.

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THE EFFECT OF FAIR VALUE IMPLEMENTATION ON CASH FLOW FORECASTING (CASE STUDY: BANKING COMPANY LISTED IN INDONESIAN STOCK EXCHANGE YEAR 2014-2015)

AKUNTABILITAS ◽

10.29259/ja.v11i1.8929 ◽

2019 ◽

Vol 11 (1) ◽

pp. 59-70

Author(s):

Riesa Morita Yuliasari ◽

Mukhtaruddin Mukhtaruddin ◽

Tertiarto Wahyudi

Keyword(s):

Cash Flow ◽

Quantitative Research ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Fair Value ◽

Financial Statement ◽

Historical Cost ◽

Cash Flow Forecasting

This study has one main objectives; to investigate about the significant effect of fair value implementation in forecasting cash flow on Banking Company in Indonesia. The methodology used in this research is quantitative research, so the data are collected from secondary data by using purposive sampling technique of Banking Company’s Financial Statement uploaded in Indonesian Stock Exchange which related to this research. The number of sample in this research are 36 financial statement of Banking Company in Indonesia for year 2014 and 2015 consist of 18 financial statement that implement fair value and 18 financial statement that still implement historical cost. The results of this study show that the implementation of fair value does significantly influence cash flow forecasting of Banking Company in Indonesia.

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A note on auditing fair value of investment properties

Journal of Property Investment and Finance ◽

10.1108/jpif-01-2021-0009 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Bo Nordlund ◽

Johan Lorentzon ◽

Hans Lind

Keyword(s):

Fair Value ◽

Financial Reports ◽

Content Type ◽

Market Values ◽

Substantial Risk ◽

Fair Market ◽

Depth Interviews ◽

Practical Implications

PurposeThe purpose of this article is to study how fair values in financial reports are audited.Design/methodology/approachThe study is a qualitative case study based on in-depth interviews.FindingsOne important finding is that auditors anchor in the figure presented by the company, and despite the auditing efforts, there is a substantial risk of management bias in the fair values reported. There is a risk for confirmation bias.Research limitations/implicationsRelatively, few respondents were employed in this study, but their background and competence lead to the assessment that the study provides a representative picture of what is being investigated.Practical implicationsAuditors may need to develop ways of performing auditing of fair values to reduce the risks identified in this study.Social implicationsThis study presents a perspective of the auditing process enabling an evaluation of the quality of fair value estimates regarding investment properties in the financial reports. This study also provides users of financial reports as investors, bankers and other institutions with an enhanced understanding of reported estimates of fair (market) values.Originality/valueVery few studies have investigated how auditors evaluate fair values of investment properties. This study contributes by giving users of financial reports an enhanced understanding of the quality of reported estimates of fair (market) values.

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