scholarly journals On the definition of fair value for purposes of IFRS

2021 ◽  
Vol 26 (2) ◽  
pp. 148-157
Author(s):  
Mikhail A. GORODILOV ◽  
Anna A. RADEVICH
Keyword(s):  
Comparative Analysis ◽  
Market Value ◽  
Fair Value ◽  
Market Valuation ◽  
Clear Definition ◽  
Appropriate Use ◽  
Existing Problems ◽  
Market Values ◽  
Different Types ◽  
Definition Of

Subject. This article discusses the issue of defining the Fair Value concept, its similarity and identification with the concept of Market Value. It examines the specifics of each particular value, defines the concept of Fair Value, and analyzes approaches (methods) of fair value valuation, clarifies existing problems of determining fair value for the purposes of IFRS application. Objectives. The article aims to define the notion of Fair Value and appropriate use in accounting, as well as explore approaches to assess fair value. Methods. For the study, we used a comparative analysis. Results. The article says of many inconsistencies in the valuation of fair value, starting with the lack of a clear definition of fair value in IFRS, which is actually identified with the concept of market value. It proposes a refined definition of fair value and identifies fundamental differences between fair and market values, which are based on the procedures used in their assessment. Conclusions. Fair and market values are two different types of valuation. Fair value can be the same as market value, but only if there is an active market available. There is no single concept of Fair Value presented in scientific and special literature. The same approaches are used in fair (IFRS) and market (valuation standards) assessments, but the methods described for each approach are not always the same.

Defining the Fair Value concept for IFRS application

2021 ◽  
Vol 22 (5) ◽  
pp. 575-591
Author(s):  
Mikhail A. GORODILOV ◽  
Anna A. RADEVICH
Keyword(s):  
Comparative Analysis ◽  
Market Value ◽  
Fair Value ◽  
Clear Definition ◽  
Appropriate Use ◽  
Existing Problems ◽  
Market Values ◽  
Different Types ◽  
Definition Of ◽  
Value Concept

Subject. This article discusses the issue of defining the Fair Value concept, its similarity and identification with the concept of Market Value. It examines the specifics of each particular value, defines the concept of Fair Value, and analyzes approaches (methods) of fair value valuation, clarifies existing problems of determining fair value for the purposes of IFRS application. Objectives. The article aims to define the notion of Fair Value and appropriate use in accounting, as well as explore approaches to assess fair value. Methods. For the study, we used a comparative analysis. Results. The article says of many inconsistencies in the valuation of fair value, starting with the lack of a clear definition of fair value in IFRS, which is actually identified with the concept of market value. It proposes a refined definition of fair value and identifies fundamental differences between fair and market values, which are based on the procedures used in their assessment. Conclusions. Fair and market values are two different types of valuation. Fair value can be the same as market value, but only if there is an active market available. There is no single concept of Fair Value presented in scientific and special literature. The same approaches are used in fair (IFRS) and market (valuation standards) assessments, but the methods described for each approach are not always the same.

The Value Relevance of Financial and Non-Financial Information

2017 ◽  
pp. 220-245 ◽  
Author(s):  
Amitav Saha ◽  
Sudipta Bose
Keyword(s):  
Value Relevance ◽  
Market Value ◽  
Financial Information ◽  
Market Valuation ◽  
Future Directions ◽  
Book Value ◽  
Research Framework ◽  
Market Values ◽  
Valuation Model ◽  
Different Types

Value-relevance research is an important domain of modern capital market research. Accounting researchers have used the value-relevance research framework in many ways with the aim of measuring whether accounting information has a predicted association with equity market values. One of the most widely used models in value-relevance research is a modification of the Ohlson (1995) market valuation model in which the market value of a firm's equity is presumed to be a function of its book value of equity and abnormal earnings. Furthermore, using the Ohlson (1995) model, accounting researchers have documented the value relevance of different types of financial and non-financial information. Drawing on a selected number of recently published studies that have documented the value relevance of different types of financial and non-financial information, this chapter reviews and integrates recent findings, highlighting challenges and providing future directions for further research in this area.

Futurization of Thinking and Behavior

2019 ◽  
pp. 219-245
Author(s):  
Anna Sircova ◽  
Angela E. Scharf ◽  
Molly Kennedy ◽  
Pinja R. Päivinen
Keyword(s):  
Comparative Analysis ◽  
Focus Groups ◽  
Policy Making ◽  
Technological Advancement ◽  
Personal Agency ◽  
Clear Definition ◽  
Working Definition ◽  
Female Presence ◽  
Definition Of ◽  
And Behavior

This chapter is looking into the emerging concept of “futurization,” which is being used in the context of policy making; however, without clear definition, it creates ambiguous reactions. What does “futurization of politics,” “futurization of thinking,” or “futurization of behavior” actually mean? This chapter looked into the associations citizens or laypeople have with terms “future” and “futurization,” and what were their expressed and unexpressed hopes, dreams, fears, and anxieties. The study, using surveys and focus-groups, revealed a rather lifeless image, future without photosynthesis, without female presence, and overall a wasteland scenario. However, when speaking about “futurization” in comparison to “future,” there is much less inevitability, more personal agency, and both believe in and fear the technological advancement. The working definition of “futurization” is offered in the chapter as well as a comparative analysis of “future” vs. “futurization.” The implications for sustainability policymaking and curriculum development in education are discussed.

An Alternative Measure of the Degree of Inequity in Assessed Values for Individual Properties: A Theoretical Perspective

1987 ◽  
Vol 15 (3) ◽  
pp. 352-365 ◽  
Author(s):  
Melvin V. Borland
Keyword(s):  
A Priori ◽  
Theoretical Perspective ◽  
Property Tax ◽  
Market Value ◽  
Alternative Measure ◽  
Sale Price ◽  
Tax Rate ◽  
Market Values ◽  
Nominal Property ◽  
Definition Of

The Coefficient of Intra-Area Dispersion of assessed value/sale price ratios (COD) is frequently used as a measure of the degree of inequity in assessed values for individual properties. However, to the extent that property tax liabilities are capitalized in the sale prices of individual properties, the COD can be shown to be inconsistent as a measure of the degree of inequity with respect to (1) alternative but a priori reasonable choices for the definition of equity and (2) changes in the nominal property tax rate on assessed value. This second conclusion is valid under each choice for the definition of equity. The Measure of Intra-Area Dispersion of assessed value/market value ratios (MOD) is presented in this article as an alternative measure of the degree of inequity in assessed values. The MOD compares assessed values to hedonic market values based on attributes rather than sale prices. Depending on the choice for the definition of equity, the MOD is preferable. Unlike a distribution of assessed values consistent with the existence of equity with respect to sale price after assessment, the distribution of assessed values consistent with the existence of equity with respect to market value is unique. As such, unlike the COD, the MOD is shown to be insensitive to changes in the nominal property tax rate on assessed value. Therefore, the MOD is reliable.

The Persistence and Market Valuation of Recurring Nonrecurring Items

2010 ◽  
Vol 85 (5) ◽  
pp. 1577-1615 ◽  
Author(s):  
William Cready ◽  
Thomas J. Lopez ◽  
Craig A. Sisneros
Keyword(s):  
Market Value ◽  
The Other ◽  
Market Valuation ◽  
Future Earnings ◽  
Special Items ◽  
Market Values

ABSTRACT: This study focuses on the persistence and market value implications of a subset of nonrecurring charges that are atypical due to repeated occurrence. The increased recurrence of supposedly nonrecurring items perhaps reflects managerial shifting of (more permanent) ordinary expenses to a transitory category or, alternatively, may reflect an environment where these items naturally occur more frequently. Either scenario suggests that these repetitive charges have future earnings implications dramatically different from truly nonrecurring events and should therefore be valued more like a recurring component of earnings. Consistent with this notion, we find that as the frequency of reporting negative special items increases (measured by the presence of multiple prior charges), the persistence of these items significantly increases with respect to future earnings. Our evidence also suggests that the valuation multiple on such charges increases with frequency. That is, the market values “recurring nonrecurring” items more like the other components of recurring earnings.

scholarly journals REDEMPTION RIGHTS FOR ACQUISITION OF NEW EMISSION AS A MEANS OF CORPORATE MANAGEMENT

2018 ◽  
pp. 117-127
Author(s):  
Mykola STETSKO
Keyword(s):  
Market Value ◽  
Fair Value ◽  
Cash Flows ◽  
Influential Factors ◽  
Share Price ◽  
Practical Implementation ◽  
Corporate Management ◽  
Market Rate ◽  
Wide Range ◽  
Definition Of

Introduction. There are cause-effect persistent relationships between the quality of corporate management of an enterprise and its ability to attract investments. Among the wide range of issues related to the definition of "corporate management", the least investigated is the means of redemption rights to purchase shares of new emission. The level of protection of investors’ rights depends directly on its capacity, and hence the investment attractiveness of individual enterprises and the capital market of the country. Purpose of the study is to substantiate the recommendations on the practical implementation of the redemption rights of shareholders to purchase shares of new emission. Methods. In order to create the conditions for the practical implementation of the redemption rights, the model of calculating the domestic fair value of redemption rights is substantiated. This model takes into account the following factors: market share price before additional emission, emission rate, emission and cash flows ratio which will be generated by the company owing to the emission results. It is a model for determining the minimum amount of additional cash flow, which should be generated by a company that carries out an additional share emission in order to preserve the market rate that took place before the increaseof the statutory capital, is offered. Results. The work emphasizes that redemption rights (for the purchase of shares) is a means against blurring the value share of individual shareholders, its devaluation and compensation of owners’ losses. The financial aspects of implementation of redemption rights, in particular, their price, fair value and influential factors are analyzed. If the share emission is low, the "blurring" of the market value of the shares in circulation and losses of shareholders will be high. The task of determining the fair value of redemption rights in the article was solved on the basis of comparing the market value of the company to the increase of the statutory capital and potential market capitalization after the additional share emission. Conclusions. It is shown that as a result of implementation of redemption rights, shareholders do not receive real additional income and increase of their assets. To compensate the shareholders losses related to the additional share emission, the necessity to permit the trade of redemption rights and the tax exemption from the sales revenue of these rights is substantiated.

scholarly journals Methodological Principles of the Accounting for Intangible Assets from the View of National and International Standards

2018 ◽  
Vol 83 (4) ◽  
pp. 111-120
Author(s):  
I. M. Dmitrenko ◽  
R. O. Kostyrko ◽  
V. P. Bondar
Keyword(s):  
Comparative Analysis ◽  
Intangible Assets ◽  
Fair Value ◽  
International Standards ◽  
Intangible Asset ◽  
Principles Of Accounting ◽  
Methodological Principles ◽  
Definition Of ◽  
The Impact ◽  
To Receive

The article defines the basic accounting items that determine the impact on the complex of methodological principles of accounting and reporting generalization of information about intangible assets. The complex of basic accounting positions for intangible assets is proposed in the following composition: definition of the object of accounting; method of identification; response to goodwill; how to receive and how to pay; the criteria for recognizing the asset is intrinsic; method of initial assessment; revaluation model; response to impairment; conditions for the choice and application of methods of accrual of depreciation; directions of disclosure. The key methodological principles of accounting for intangible assets are systematized on the basis of a comparative analysis of the provisions of national and international standards. As a result of the comparative analysis, both conceptually similar principles and those that are characterized by significant differences are established. In particular, this applies to: the ways of obtaining and payment of the intangible assets, for which the IAS does not provide for the free receipt and payment of an intangible asset to the authorized capital of the enterprise, which emphasizes the nature of such assets in view of the obligation to receive future economic benefits; the definition of the value of internally generated goodwill is precisely in IAS, which contributes to a reasonable separation from the value of its own intangible assets in the event of the merger of enterprises; the initial valuation of the intangible assets, for which IAS prioritizes the valuation at cost rather than fair value, as defined by National Accounting Standards, due to the dependence of the usually unpopular phenomenon - the existence of an active market for such assets; the variability of the choice of depreciation methods for the intangible assets, for which IAS offers more opportunities to take into account the specifics of the use of these objects during the formation of depreciation costs; directions of disclosure of  the intangible assets information in the notes to the financial statements, which are clearly defined in the IAS. Comments on the conditions for the implementation of the requirements of national and international standards for the accounting of intangible assets at the level of economic entities from the point of view of the established differences and their consequences are given. It is proved that a much higher level of transparency of information about intangible assets is provided in the case of accounting and financial reporting by entities in accordance with the requirements of IAS and IFRS.

scholarly journals Item in dependability: definition and content of the concept

Dependability ◽  
2019 ◽  
Vol 19 (4) ◽  
pp. 3-7 ◽  
Author(s):  
V. A. Netes
Keyword(s):  
Comparative Analysis ◽  
International Standards ◽  
The Past ◽  
Different Types ◽  
The Subject ◽  
Federal Laws ◽  
Basic Concepts ◽  
Definition Of ◽  
Correct Understanding ◽  
The Relationship

Aim. The paper continues the series of publications that investigate and discuss the essence and definitions of the basic concepts of the dependability theory. It analyzes the basic concept, which is the subject of consideration in dependability, for which the term “item” is usually used. The concept of “dependability” is defined for it, and in general all the terminology of dependability applies to it. The following issues are considered: how to name and define this subject of consideration, what it can be, what can be its constituents. In particular, the relationship between the concepts of “item” and “product” is discussed.Methods. The evolution of definitions of this concept in the Russian and international terminological standards in dependability over the past 30 years is traced. A comparative analysis of other standards and federal laws relating to items of different types is carried out. The viability of two main ways of getting an idea of a concept is considered: illustrative (based on examples) and definitional (by means of sequential definition of some concepts through others).Findings and conclusions. The definition and correct understanding of the concept of “item” is of great importance, as it affects the scope of dependability standards. It is explained why it is necessary to accept that the definitions of the basic concepts cannot be rigorously formalized and are in fact only explanations. It is shown that the definitions of the item in the existing Russian and international standards (GOST 27.002–2015 and IEC 60050-192:2015) have inaccuracies. To eliminate them, improved notes to the definition of an item are proposed. The first note lists the possible types of items: products (parts, assembly units, complexes) and their components; buildings and structures; systems consisting of jointly functioning products and structures and their subsystems. The second note indicates the relationship between the main constituents of the item: hardware, software and people (personnel), and their possible combinations. The paper provides reasons for considering virtual items that play an important role in today’s information and telecommunication technologies and are logically isolated subsystems within the systems that they are part of. Besides that, it points out the deficiencies in the definitions of various items in GOST 18322–2016.

scholarly journals Evolution of The Functions of Money in The Context of The Approaches of Various Schools of Economic Thought

2021 ◽  
Vol 12 (2) ◽  
pp. 036-049
Author(s):  
Igor M. Shiriaev ◽  
◽  
Daria S. Zakharova ◽  
Keyword(s):  
Economic Theory ◽  
Political Economy ◽  
Comparative Analysis ◽  
Economic Thought ◽  
Monetary Theory ◽  
Theoretical Approaches ◽  
Classical Political Economy ◽  
Different Types ◽  
Neoclassical Economic Theory ◽  
Definition Of

The purpose of this paper is the identification of the functions of money and characteristic of their evolution through change of the used types of money. Research methods are a brief overview and comparative analysis of economic-theoretical approaches to the definition of the functions of money. A comparative analysis of the classifications of the functions of money, made by physiocracy, classical political economy, Marxist political economy, Austrian school of economic theory, German historical school of economics, neoclassical economic theory, Keynesianism, monetarism, institutionalism, modern monetary theory, is carried out. It is shown that various economic schools have different approaches to the definition of the functions of money. Some scientific schools separate money functions for basic and secondary, but other schools consider that all the functions are equally significant. It is concluded that modern changes in the types of money used lead to the fact that different functions of money (in particular, the functions of medium of exchange, measure of value, reserve of value, means of payment) are most effectively implemented by different types of money. Scientific novelty consists in the reconstruction and comparison of lists of functions of money identified by the most important schools of economic theory. The conclusions of the research can be used in scientific and pedagogical activities in the study of the essence and functions of money.

scholarly journals Terminology for describing normally sited and ectopic pregnancies on ultrasound: ESHRE recommendations for good practice

2020 ◽  
Vol 2020 (4) ◽  
Author(s):  
◽  
Emma Kirk ◽  
Pim Ankum ◽  
Attila Jakab ◽  
Nathalie Le Clef ◽  
...  
Keyword(s):  
Clinical Practice ◽  
Ectopic Pregnancy ◽  
Working Group ◽  
Good Practice ◽  
Clear Definition ◽  
Different Types ◽  
Ectopic Pregnancies ◽  
Definition Of ◽  
Comprehensive Classification

Abstract STUDY QUESTION What recommendations can be provided to improve terminology for normal and ectopic pregnancy description on ultrasound? SUMMARY ANSWER The present ESHRE document provides 17 consensus recommendations on how to describe normally sited and different types of ectopic pregnancies on ultrasound. WHAT IS KNOWN ALREADY Current diagnostic criteria stipulate that each type of ectopic pregnancy can be defined by clear anatomical landmarks which facilitates reaching a correct diagnosis. However, a clear definition of normally sited pregnancies and a comprehensive classification of ectopic pregnancies are still lacking. STUDY DESIGN, SIZE, DURATION A working group of members of the ESHRE Special Interest Group in Implantation and Early Pregnancy (SIG-IEP) and selected experts in ultrasound was formed in order to write recommendations on the classification of ectopic pregnancies. PARTICIPANTS/MATERIALS, SETTING, METHODS The working group included nine members of different nationalities with internationally recognised experience in ultrasound and diagnosis of ectopic pregnancies on ultrasound. This document is developed according to the manual for development of ESHRE recommendations for good practice. The recommendations were discussed until consensus by the working group, supported by a survey among the members of the ESHRE SIG-IEP. MAIN RESULTS AND THE ROLE OF CHANCE A clear definition of normally sited pregnancy on ultrasound scan is important to avoid misdiagnosis of uterine ectopic pregnancies. A comprehensive classification of ectopic pregnancy must include definitions and descriptions of each type of ectopic pregnancy. Only a classification which provides descriptions and diagnostic criteria for all possible locations of ectopic pregnancy would be fit for use in routine clinical practice. The working group formulated 17 recommendations on the diagnosis of the different types of ectopic pregnancies on ultrasound. In addition, for each of the types of ectopic pregnancy, a schematic representation and examples on 2D and 3D ultrasound are provided. LIMITATIONS, REASONS FOR CAUTION Owing to the limited evidence available, recommendations are mostly based on clinical and technical expertise. WIDER IMPLICATIONS OF THE FINDINGS This document is expected to have a significant impact on clinical practice in ultrasound for early pregnancy. The development of this terminology will help to reduce the risk of misdiagnosis and inappropriate treatment. STUDY FUNDING/COMPETING INTEREST(S) The meetings of the working group were funded by ESHRE. T.T. declares speakers’ fees from GE Healthcare. The other authors declare that they have no conflict of interest. TRIAL REGISTRATION NUMBER N/A DISCLAIMER This Good Practice Recommendations (GPR) document represents the views of ESHRE, which are the result of consensus between the relevant ESHRE stakeholders and where relevant based on the scientific evidence available at the time of preparation. ESHRE’s GPRs should be used for informational and educational purposes. They should not be interpreted as setting a standard of care or be deemed inclusive of all proper methods of care nor exclusive of other methods of care reasonably directed to obtaining the same results. They do not replace the need for application of clinical judgement to each individual presentation, nor variations based on locality and facility type. Furthermore, ESHRE’s GPRs do not constitute or imply the endorsement, recommendation or favouring of any of the included technologies by ESHRE.

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