Model Fair Value Measurements Curriculum

2019 ◽  
pp. 439-451
Keyword(s):  
Fair Value ◽  
Fair Value Measurements

Fair value measurements: The next step

2007 ◽  
Vol 18 (6) ◽  
pp. 89-94
Author(s):  
Elaine Henry ◽  
Oscar J. Holzmann ◽  
Ya-wen Yang
Keyword(s):  
Fair Value ◽  
Fair Value Measurements

Fair Value Accounting and Earnings Persistence: Evidence from International Banks

2017 ◽  
Vol 17 (1) ◽  
pp. 47-68 ◽  
Author(s):  
Daifei (Troy) Yao ◽  
Majella Percy ◽  
Jenny Stewart ◽  
Fang Hu
Keyword(s):  
Strong Association ◽  
Balance Sheet ◽  
Fair Value ◽  
Institutional Factors ◽  
Earnings Persistence ◽  
Legal Enforcement ◽  
International Banks ◽  
Level 3 ◽  
Fair Value Measurements ◽  
Level 2

ABSTRACT Using hand-collected data from a sample of 210 international banks during the period 2009 to 2013, we investigate whether fair value exposure, the proportion of financial assets measured at fair values, is associated with earnings persistence and whether the reliability of fair value measurements influences earnings persistence. We also examine whether the association between fair value measurements and earnings persistence is a function of institutional factors such as legal enforcement, the audit environment, and country-level auditor industry expertise. Results suggest that the use of fair values for balance sheet financial instruments enhances earnings persistence. Also, we find that the nondiscretionary fair value Level 1 assets (measured with observable inputs) are positively associated with earnings persistence, whereas the Level 2 assets (measured with indirectly observable inputs) and Level 3 assets (measured using unobservable inputs) are not associated with earnings persistence. We provide further evidence that there is a strong association between factors reflecting countrywide institutional structures and the predictive power of fair values based on discretionary measurement inputs (Level 2 and Level 3 assets) and we find that the moderating effect from these institutional factors is greater for Level 3 assets than for Level 2 assets. Additional tests suggest that the association between fair value estimates and earnings persistence is moderated by the classification of fair value assets (that is, through profit and loss versus other comprehensive income) and the reliability of fair value estimates.

scholarly journals Fair Value Accounting: measurements of biological assets in praxis and perspectives of accounting professionals in the Brazilian sugarcane sector

2018 ◽  
Vol 37 (4) ◽  
pp. 143-162
Author(s):  
Rafael Todescato Cavalheiro ◽  
Regio Márcio Toesca Gimenes ◽  
Erlaine Binotto
Keyword(s):  
Cluster Analysis ◽  
Population Sample ◽  
Fair Value ◽  
Point Of View ◽  
Exact Test ◽  
Professional Groups ◽  
Advantages And Disadvantages ◽  
Accounting Professionals ◽  
The Impact ◽  
Fair Value Measurements

This study aimed to analyze the context of fair value measurements of biological assets under the accounting professionals’ perspective from the Brazilian sugarcane sector. Secondly, verifying the existence of clusters among the participants of the study and also checking whether or not there is a relationship between the accounting professional’s profile and his perception of the impacts on the measurement of biological assets. A field study was carried out utilizing a survey with qualitative and quantitative approach, involving cluster analysis, content analysis and Fisher’s exact test, considering a population sample of 32 accounting professionals from the sector. From the cluster analysis it was possible to identify the existence of three professional groups with similar characteristics of profile and perception of impacts brought by IAS nº 41. The quantitative analysis shows that the professionals that work in plants located in states with high or low concentration of sugarcane productive chain perceive the rule distinctively. The qualitative analysis suggest that there are two views, one against and the other in favor of the rule, showing that there is not a consensus when it comes to enforcing the rule in the sector. As few studies attempt to analyze the impact, advantages and disadvantages from the accountant’s point of view, this study contributes to fill out this gap. This study offers insights to the governing entities on the necessity of a greater practical detailing and problems related to the acceptance of the rule in Brazil.

Fair value, corporate governance, social responsibility disclosure and banks’ performance

2019 ◽  
Vol 19 (1) ◽  
pp. 30-47 ◽  
Author(s):  
Yi Zhang ◽  
Gin Chong ◽  
Ruixin Jia
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Social Responsibility ◽  
Fair Value ◽  
Content Type ◽  
Fair Value Measurement ◽  
Level 3 ◽  
Value Measurement ◽  
Fair Value Measurements ◽  
Corporate Disclosures

Purpose The purpose of this paper is to investigate the interaction between mandatory disclosures and voluntary disclosures of banks and the information content of corporate disclosures on firm performance. Design/methodology/approach Based on the US-listed banks from 2007 to 2015, this paper examines the interplay among the fair-value measurement, corporate governance disclosure and voluntary social responsibility disclosure. In addition, the paper examines the extent of such disclosure of mandatory items (fair-value measurement) versus voluntary items (corporate governance and social responsibility issues) on banks’ performance in terms of their return on equity and return on asset. Findings This paper finds that banks with a higher social responsibility disclosure score and stronger corporate governance tend to have lower percentages of Level 3 fair-value assets. Banks with a higher Level 3 fair-value asset disclosure have a lower financial performance. Practical implications This paper provides evidence of the interplay of various corporate disclosures by banks and implies that banks use fair-value measurements to disguise their poor performance. The findings provide insights for the policymakers, investors and regulators to assess banks’ disclosure. Originality/value This paper extends the study of banks’ fair-value measurements and is the first study to examine the interaction between voluntary and mandatory disclosures. This study sheds lights on the theories of performativity, agency and stakeholder by demonstrating the information contents of corporate disclosures on firm performance.

Auditing Fair Value Measurements: A Synthesis of Relevant Research

2006 ◽  
Vol 20 (3) ◽  
pp. 287-303 ◽  
Author(s):  
Roger D. Martin ◽  
Jay S. Rich ◽  
T. Jeffrey Wilks
Keyword(s):  
Decision Making ◽  
Fair Value ◽  
Two Dimensions ◽  
Judgment And Decision Making ◽  
Future Research ◽  
Relevant Research ◽  
Research Directions ◽  
Academic Literature ◽  
Future Research Directions ◽  
Fair Value Measurements

To contribute to the PCAOB project on auditing fair value measurements (FVMs), we synthesize relevant academic literature to offer insights, conclusions, and future research directions for auditors, standard-setters, and academics focusing on auditing FVMs. We structure our synthesis along two dimensions: (1) an emphasis on the auditor's need to understand how FVMs are prepared, and (2) the audit steps and procedures necessary to verify and attest to FVMs, including an awareness of the potential biases inherent in auditing FVMs. Drawing primarily from the judgment and decision-making literature, we highlight a number of potential biases and limitations in the preparation and audit of FVMs. Additionally, we note that the specialized valuation knowledge necessary to effectively audit FVMs will be difficult for auditors to gain and maintain.

Fair value measurements

2006 ◽  
Vol 18 (2) ◽  
pp. 87-90 ◽  
Author(s):  
Oscar J. Holzmann ◽  
Tom Robinson
Keyword(s):  
Fair Value ◽  
Fair Value Measurements
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