An Analysis Of Factors Impacting The Value-Relevance Of SFAS No. 107 Fair Value Disclosures

This study examines the impact of hypothesized factors on the value-relevance of SFAS No. 107 fair value disclosures.  These factors include firm size, the relative magnitude of the difference between the fair value and the historical cost measurements for each financial instrument, firm financial condition, and the quality of a firm’s financial statement audit.  A pooled valuation model is employed on the sample of 867 firm years for banks and bank holding companies during the period of 1996 and 1997.   The results indicate that the SFAS No. 107 fair value disclosures for investment securities, net loans, and long-term debt are value-relevant in explaining the market value of common equity for the sample banks.  With respect to the hypothesized factors, firm size was found to have a statistically significant impact on the value-relevance of the disclosures for net loans and long-term debt.  Additionally, the relative magnitude of the difference between the fair value and historical cost had a statistically significant effect on the value-relevance of the disclosure for investment securities and long-term debt.  Finally, firm financial condition and the quality of a firm’s audit were found to have a statistically significant impact on the fair value disclosure for net loans.  The results of this study are descriptive of the behavior of financial statement users with respect to these fair value disclosures.  The implications of this study’s findings are useful for both accounting standard-setters and preparers of financial statements.  Taken together, these findings suggest that the market does not respond to the SFAS No. 107 fair value disclosures at their face value alone or without considering their context.  Specifically, it appears to look to other factors that may impact the relevance and/or reliability of these disclosures.

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The Influence Of Long-Term Tangıble Asset’s Valuatıon On Fınancıal Indıcators: The Attıtude Of Shareholders And Credıtors

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n4p367 ◽

2016 ◽

Vol 12 (4) ◽

pp. 367

Author(s):

Lina Paliuliene

Keyword(s):

Fair Value ◽

Total Asset ◽

Financial Indicators ◽

Historical Cost ◽

Valuation Methods ◽

Financial Condition ◽

Valuation Method

In the article the long-term tangible asset’s valuation methods by the historical cost and the fair value are generalized, indicators that are analyzed by shareholders and creditors when assessing the company's financial condition are identified. For the research eight Lithuanian companies which apply different long-term tangible asset’s valuation methods were selected from two industries. The influence of long-term tangible asset’s valuation was explored by five relative indicators. It was determined that valuation method is associated with long-term tangible asset’s part in the total company's asset. When long-term tangible asset’s part in the total company’s asset constitutes less than 50 percent, the asset’s valuation method has no influence on the analyzed indicators. When long-term tangible asset’s part in the total asset constitutes more than 50 percent, the asset’s valuation method affects solvency and investment indicators. Long-term tangible asset’s valuation method does not affect profitability indicators, independent of long-term tangible asset’s part in the total asset.

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Effects of training on quality of peer review: randomised controlled trial

BMJ ◽

10.1136/bmj.38023.700775.ae ◽

2004 ◽

Vol 328 (7441) ◽

pp. 673 ◽

Cited By ~ 112

Author(s):

Sara Schroter ◽

Nick Black ◽

Stephen Evans ◽

James Carpenter ◽

Fiona Godlee ◽

...

Keyword(s):

Randomised Controlled Trial ◽

Peer Review ◽

Controlled Trial ◽

Control Group ◽

Group Score ◽

The Difference ◽

Randomised Controlled ◽

Quality Instrument

AbstractObjective To determine the effects of training on the quality of peer review.Design Single blind randomised controlled trial with two intervention groups receiving different types of training plus a control group.Setting and participants Reviewers at a general medical journal.Interventions Attendance at a training workshop or reception of a self taught training package focusing on what editors want from reviewers and how to critically appraise randomised controlled trials.Main outcome measures Quality of reviews of three manuscripts sent to reviewers at four to six monthly intervals, evaluated using the validated review quality instrument; number of deliberate major errors identified; time taken to review the manuscripts; proportion recommending rejection of the manuscripts.Results Reviewers in the self taught group scored higher in review quality after training than did the control group (score 2.85 v 2.56; difference 0.29, 95% confidence interval 0.14 to 0.44; P = 0.001), but the difference was not of editorial significance and was not maintained in the long term. Both intervention groups identified significantly more major errors after training than did the control group (3.14 and 2.96 v 2.13; P < 0.001), and this remained significant after the reviewers' performance at baseline assessment was taken into account. The evidence for benefit of training was no longer apparent on further testing six months after the interventions. Training had no impact on the time taken to review the papers but was associated with an increased likelihood of recommending rejection (92% and 84% v 76%; P = 0.002).Conclusions Short training packages have only a slight impact on the quality of peer review. The value of longer interventions needs to be assessed.

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Harmonization, Comparability, and Fair Value Accounting

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x0702200307 ◽

2007 ◽

Vol 22 (3) ◽

pp. 493-509 ◽

Cited By ~ 23

Author(s):

Benzion Barlev ◽

Joshua Rene Haddad

Keyword(s):

Relevant Information ◽

Fair Value ◽

Global Markets ◽

Common Denominator ◽

Fair Value Accounting ◽

Accounting Data ◽

Generally Accepted Accounting Principles ◽

Historical Cost ◽

The Common

In this paper, we focus on the relationships between international accounting harmonization (IAH) and the paradigm of Fair Value Accounting (FVA). Accountants rely on the accounting concept of comparability in defining IAH and are in agreement that a set of internationally implemented Generally Accepted Accounting Principles (GAAP) is required for a “complete harmonization.” We argue, however, that a second requirement—a common denominator for measuring, recording, and reporting business transactions, assets, liabilities, and equities—is necessary to reach a state of a “complete IAH.” We explain the logic behind the requirement of a common denominator and assert that IAH is feasible under the paradigm of FVA, but not under that of Historical Cost Accounting (HCA). This is true because the concept of fair value, but not historical cost, provides the common denominator necessary for a meaningful comparison of accounting data. We then argue that the paradigm of FVA acts as a catalyst in a harmonization cycle: FVA propels IAH and IAH provides more relevant information that may foster the efficiency of global markets, which improves the quality of the FVA figures.

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Identifying Effectors of Outcomes in Patients with Large Umbilical Hernias

The American Surgeon ◽

10.1177/000313481608200727 ◽

2016 ◽

Vol 82 (7) ◽

pp. 613-621 ◽

Cited By ~ 3

Author(s):

Steven A. Groene ◽

Davis W. Heniford ◽

Tanushree Prasad ◽

Amy E. Lincourt ◽

Vedra A. Augenstein

Keyword(s):

Umbilical Hernia ◽

Defect Size ◽

Long Term Outcomes ◽

Preoperative Pain ◽

The Mean ◽

The Difference ◽

One Year

Quality of life (QOL) has become an important focus of hernia repair outcomes. This study aims to identify factors which lead to ideal outcomes (asymptomatic and without recurrence) in large umbilical hernias (defect size ≥9 cm2). Review of the prospective International Hernia Mesh Registry was performed. The Carolinas Comfort Scale was used to measure QOL at 1-, 6-, and 12-month follow-up. Demographics, operative details, complications, and QOL data were evaluated using standard statistical methods. Forty-four large umbilical hernia repairs were analyzed. Demographics included: average age 53.6 ± 12.0 and body mass index 34.9 ± 7.2 kg/m2. The mean defect size was 21.7 ± 16.9 cm2, and 72.7 per cent were performed laparoscopically. Complications included hematoma (2.3%), seroma (12.6%), and recurrence (9.1%). Follow-up and ideal outcomes were one month = 28.2 per cent, six months = 42.9 per cent, one year = 55.6 per cent. All patients who remained symptomatic at one and two years were significantly symptomatic before surgery. Symptomatic preoperative activity limitation was a significant predictor of nonideal outcomes at one year ( P = 0.02). Symptomatic preoperative pain was associated with nonideal outcomes at one year, though the difference was not statistically significant ( P = 0.06). Operative technique, mesh choice, and fixation technique did not impact recurrence or QOL. Repair of umbilical hernia with defects ≥9 cm2 had a surprising low rate of ideal outcomes (asymptomatic and no recurrence). All patients with nonideal long-term outcomes had preoperative pain and activity limitations. These data may suggest that umbilical hernia should be repaired when they are small and asymptomatic.

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Changes of Insulation Properties of Photovoltaic Cables Caused by Ageing Treatment

Transactions on Electrical Engineering ◽

10.14311/tee.2017.1.006 ◽

2020 ◽

Vol 6 (1) ◽

pp. 6-9 ◽

Cited By ~ 1

Author(s):

Juraj Packa ◽

Vladimir Kujan ◽

Daniel Štrkula ◽

Vladimír Šály ◽

Milan Perný

Keyword(s):

Power Plants ◽

Real Life ◽

Life Time ◽

Operating Conditions ◽

Solar Panels ◽

Font Size ◽

Long Term Stability ◽

Cable Systems

An important part of the photovoltaic power plants are cable systems. The dielectric properties of cables, reliability and durability depend on quality of production processes, operating conditions and degradation factors, as well. Expected lifetime of cable systems is more than 20-30 years in general. Their failure free operation and long-term stability of properties has a direct impact on the economic return of the investments. According to our experiences the tests in compliance with valid standards are not adequate to verify real life time during operation. Photovoltaic cables intended for use in outdoor applications for the connection between the solar panels and possible connection between panels and inverter were chosen for our experiments. The changes of insulation resistance and breakdown voltage caused by some degradation factors, mainly water, are presented. This research was inspired by real failure in operation.

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Relative value relevance of historical cost vs. fair value: Evidence from bank holding companies

Journal of Accounting and Public Policy ◽

10.1016/s0278-4254(02)00084-4 ◽

2003 ◽

Vol 22 (1) ◽

pp. 19-42 ◽

Cited By ~ 65

Author(s):

Inder K Khurana ◽

Myung-Sun Kim

Keyword(s):

Value Relevance ◽

Fair Value ◽

Bank Holding Companies ◽

Holding Companies ◽

Historical Cost ◽

Relative Value

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Professional Securities Analysts Meet Professors Of Financial Analysis: A Pilot Study Of Financial Statement Assessment Differences

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v7i12.2361 ◽

2011 ◽

Vol 7 (12) ◽

Author(s):

Robert L. Webster ◽

Jeanie Curry

Keyword(s):

Private Sector ◽

Financial Analysis ◽

Financial Statements ◽

General Purpose ◽

Financial Statement ◽

Font Size ◽

Financial Condition ◽

Securities Analysts ◽

Data Collection Process ◽

User Groups

This multivariate behavioral research investigates whether the financial assessments made by professors of financial analysis differ from those made by private sector financial analysts.  Professors of financial analysis and professional private sector securities analysts were put into separate groups for the study.  Members of the two groups were asked by way of a mailed survey to analyze multi-year comparative financial statements of a business enterprise using variables related to liquidity, long term debt, cash flow, dividend prospects, profitability, and overall financial condition.  The study found a significant statistical difference in assessment results of the analysts and the professors. These results indicate that general purpose financial statements convey different information to the two user groups.  The paper describes the data collection process, statistical analysis, and results of the research as well as limitations and a call for additional research.

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Financial Statement Outcomes When Alternative Derivative Hedging Designations Exist

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v19i3.2167 ◽

2011 ◽

Vol 19 (3) ◽

Author(s):

Arlette C. Wilson ◽

Ronald L. Clark ◽

William Pugh

Keyword(s):

Cash Flow ◽

Fair Value ◽

Financial Statement ◽

Font Size ◽

Hedge Accounting

When alternate reporting methods exist, financial statement preparers tend to select methods that provide more favorable results.  Certain hedging transactions may be designated as either a fair value hedge or a cash flow hedge.  Both designations achieve the objective of matching the gain <loss> on the derivative with the loss <gain> on the hedged item in the same reporting period.  However, the cash flow hedge accounting tends to create a greater appearance of equity volatility.

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ASPEK HUKUM PENILAIAN HARGA YANG WAJAR DALAM PERTUKARAN BARANG

to-ra ◽

10.33541/tora.v1i2.1137 ◽

2015 ◽

Vol 1 (2) ◽

pp. 99

Author(s):

Henry Donald Lombantoruan

Keyword(s):

Exchange Process ◽

Market Value ◽

Financial Statements ◽

Fair Value ◽

Goods And Services ◽

Principle Of Justice ◽

The Difference ◽

Economic Transaction ◽

Special Assessment

Abstract One of the main principles to ensure economic transactions more efficient and effective is the principle of justice felt by the economic actors. The principle of justice can only be realized if each economic actor mutually agreed upon value (value) of goods and services as well as the currency unit in every economic transaction. In other words, the exchange of (exchange) would not happen if there is no agreement on the value of the underlying economic exchange. In this case, efficient or not an economic system will be determined by how objects are interchangeable assessed. Conditions ‘over-valued’ or ‘under-valued’ of object-exchange will certainly make the transaction does not run efficiently and optimally. Conditions ‘over-valued’ will be very detrimental to consumers and profitable producer or seller. The difference in prices due to ‘over-valued’ is a reflection of the inefficiency of an economy, because consumers should get cheaper products and services. Exchange process in a transaction that took place between economic actors was based on the agreement the fair value of the goods and services both private and state. Fair value (fair value) is basically a reflection of the market value (Market value) of assets. When the fair value opinion generated by the Valuer carried out correctly, of course, will increase improve the quality of financial statements. This is because the value of corporate assets truly reflect the conditions (market value) up to date, so that the company’s assets will not be reported undervalued or overvalued. The problem is, until now we have not had conditions governing special assessment. No new judging partially regulated in the Capital Market Law, Banking and Insurance. In the case there are still many areas that need adjustment of business judgment. The question is, what arrangements benefit assessment? Kata kunci: Aspek Hukum Penilaian Harga Wajar

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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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