Market Perceptions of the Informational and Convergence Effects of Fair Value Reporting for Tangible Assets: US and Cross-Country Evidence

2017 ◽  
Author(s):  
Jenelle Conaway ◽  
Lihong Liang ◽  
Edward J. Riedl
Keyword(s):  
Fair Value ◽  
Tangible Assets ◽  
Cross Country ◽  
Market Perceptions ◽  
Value Reporting

Market Perceptions of Fair Value Reporting for Tangible Assets

2021 ◽  
pp. 0148558X2110212
Author(s):  
Jenelle K. Conaway ◽  
Lihong Liang ◽  
Edward J. Riedl
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Market Reaction ◽  
Fair Value ◽  
The United States ◽  
Cross Sectional ◽  
Quality Reporting ◽  
Tangible Assets ◽  
Market Perceptions ◽  
Value Reporting

This article examines equity market perceptions of fair value reporting for tangible assets. We identify six events—four designated as increasing, two as decreasing—affecting the likelihood of U.S. adoption of fair value reporting for investment property (i.e., real estate) assets, one of the largest asset classes in the world. Fair value adoption in the United States would facilitate convergence of one of the widest remaining disparities between U.S. reporting and International Financial Reporting Standards (IFRS): accounting for tangible investment property assets, where the United States (IFRS) requires depreciated historical cost (recognized or disclosed fair values). Using a sample of U.S. investment property firms, we document an average positive market reaction for movement toward fair value reporting. We further find predictable cross-sectional variation, with the market reaction increasing for firms with greater commitment to high-quality reporting, greater investor demand for fair values, higher financial risk, and staler asset values. Overall, the results are consistent with U.S. equity markets perceiving net benefits to movement toward a fair value reporting approach for this asset class.

Does Fair Value Reporting Affect Risk Management? International Survey Evidence

CFA Digest ◽  
2012 ◽  
Vol 42 (1) ◽  
pp. 62-64 ◽  
Author(s):  
Yong Shuai
Keyword(s):  
Risk Management ◽  
Fair Value ◽  
International Survey ◽  
Value Reporting

What Is Fair Value Reporting?

2015 ◽  
pp. 47-70 ◽  
Keyword(s):  
Fair Value ◽  
Value Reporting

Small and medium-sized entities in the agricultural sector: Fair value reporting challenges

Agrekon ◽  
2013 ◽  
Vol 52 (2) ◽  
pp. 52-74 ◽  
Author(s):  
P.N. Maina ◽  
H.C. Wingard
Keyword(s):  
Agricultural Sector ◽  
Fair Value ◽  
Value Reporting

scholarly journals Fair Value Accounting: Implementation Challenges Facing Small and Medium-Sized Entities in the Agricultural Sector

2018 ◽  
Vol 8 (4) ◽  
pp. 60
Author(s):  
Joseph Kwasi Agyemang ◽  
Owusu Acheampong ◽  
Wiafe Nti Akenten
Keyword(s):  
Financial Reporting ◽  
Agricultural Sector ◽  
Fair Value ◽  
International Standards ◽  
Reporting Standards ◽  
Fair Value Accounting ◽  
Implementation Challenges ◽  
Financial Reporting Standards ◽  
Regulatory Bodies ◽  
Value Reporting

Nowadays, the relevance of fair value in financial reporting is gaining impetus and recent discussions are moving in the trend of full fair value reporting. Small and medium-sized entities are not ignored in this instance. The move to new reporting standards results in various challenges for different interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector with evidence from regulatory bodies in Ghana. The study established that there is lack of methodological relationship between existing local laws and IFRS and absence of involvement of regulatory bodies in financial reporting standards setting. In light of these challenges, the study recommends involvement of regulatory bodies in standard setting and consideration should also be given to local laws when setting international standards.

scholarly journals Are Extensive Audits 'Good News'? Market Perceptions of Abnormal Audit Fees and Fair Value Disclosures

2013 ◽  
Author(s):  
Ulf Mohrmann ◽  
Jan Riepe ◽  
Ulrike Stefani
Keyword(s):  
Audit Fees ◽  
Fair Value ◽  
Good News ◽  
Market Perceptions

Fair Value Exposure, Auditor Specialization, and Banks’ Discretionary Use of the Loan Loss Provision

2017 ◽  
Vol 35 (2) ◽  
pp. 318-348 ◽  
Author(s):  
Brian Bratten ◽  
Monika Causholli ◽  
Linda A. Myers
Keyword(s):  
Earnings Management ◽  
Banking Industry ◽  
Fair Value ◽  
Loan Loss ◽  
Management Behavior ◽  
Management Tools ◽  
Loan Loss Provision ◽  
Value Reporting ◽  
Auditor Specialization ◽  
Industry Specialist

In this study, we examine whether banks’ use of the loan loss provision (LLP) to manage earnings is associated with (a) the extent to which banks hold assets subject to fair value reporting and (b) the use of an industry specialist auditor. We find that banks with a greater proportion of assets subject to fair value reporting (i.e., higher fair value exposure) use less LLP-based earnings management but more transaction-based earnings management (i.e., earnings management achieved by timing the realization of gains/losses). We also find that banks engaging industry specialist auditors use less LLP-based earnings management. Our findings suggest that banks’ use of the LLP to manage earnings is more limited when they have access to alternative earnings management tools and when they engage an auditor with more industry knowledge. Our results should be informative to regulators, members of the banking industry, and academics interested in the earnings management behavior of banks.

Does Fair Value Reporting Affect Risk Management? International Survey Evidence

2011 ◽  
Vol 40 (3) ◽  
pp. 525-551 ◽  
Author(s):  
Karl V. Lins ◽  
Henri Servaes ◽  
Ane Tamayo
Keyword(s):  
Risk Management ◽  
Fair Value ◽  
International Survey ◽  
Value Reporting

The effects of fair value reporting on corporate foreign exchange exposures

2017 ◽  
Vol 39 ◽  
pp. 215-238 ◽  
Author(s):  
Alain Krapl ◽  
Robert Salyer
Keyword(s):  
Foreign Exchange ◽  
Fair Value ◽  
Value Reporting
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