scholarly journals Is It Possible to Monetarily Quantify the Emotional Value Transferred by Companies and Organizations? An Emotional Accounting Proposal

2022 ◽  
Vol 12 ◽  
Author(s):  
Jose Luis Retolaza ◽  
Leire San-Jose
Keyword(s):  
Market Price ◽  
Consumer Surplus ◽  
Fair Value ◽  
Economic Science ◽  
Social Accounting ◽  
A Value ◽  
Value Transfer ◽  
Perceived Satisfaction ◽  
Subjective Utility ◽  
Emotional Value

Social accounting focuses on value transactions between organizations and their stakeholders; both market ones, where the value perceived by the different stakeholders is identified, and non-markets ones, where transactions are monetized at their fair value. There was long awareness of an emotional value translation, linked to the transfer of different products, services, remunerations, and incentives, regardless of whether they were market or non-market. Yet that emotional value seemed to be anchored in the field of psychology and managed to elude economic science. This study seeks to identify emotional value with consumer surplus and, by extension, of the other stakeholders in a value transfer process. This proposal allows the emotional value to be anchored in the micro-economy and allows it to be objectively calculated using a regression involving three elements: the market price, the fair value interval, and a perceived satisfaction score by the different stakeholders in the form of significant sampling. The result obtained not only allows Social Accounting to be complemented with emotional value, but it also facilitates its incorporation in the strategy to optimize the emotional value. Furthermore, it enables a quantification of the perceived subjective utility, which opens up a research path where some possible lines are clearly identified.

scholarly journals Determination of the Value of Intangible Assets in the Companies of Lithuania

2017 ◽  
Vol 14 (2) ◽  
pp. 55-68 ◽  
Author(s):  
Rita Bužinskienė
Keyword(s):  
Financial Management ◽  
Intangible Assets ◽  
Fair Value ◽  
Financial Information ◽  
Financial Accounting ◽  
True Value ◽  
A Value ◽  
The Impact

AbstractIn accordance with generally accepted accounting standards, most intangibles are not accounted for and not reflected in the traditional financial accounting. For this reason, most companies account intangible assets (IAs) as expenses. In the research, 57 sub-elements of IAs were applied, which are grouped into eight main elements of IAs. The classification of IAs consists in two parts of assets: accounting and non-accounting. This classification can be successfully applied in different branches of enterprises, to expand and supplement the theoretical and practical concepts of the company's financial management. The article proposes to evaluate not only the value of financial information for IAs (accounted) but also the value of non-financial information for IAs (non-accounted), thus revealing the true value of IAs that is available to the companies of Lithuania. It names a value of general IAs. The results of the research confirmed the IA valuation methodology, which allows companies to calculate the fair value of an IA. The obtained extended IAs valuation information may be valuable to both the owners of the company and investors, as this value plays an important practical role in assessing the impact of IAs on the market value of companies.

Post-implementation challenges of fair value measurement (IFRS 13): some empirical evidence

2020 ◽  
Vol 11 (4) ◽  
pp. 587-607
Author(s):  
Babajide Oyewo
Keyword(s):  
Financial Reporting ◽  
Market Price ◽  
Fair Value ◽  
Economic Benefits ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Content Type ◽  
Audit Firm ◽  
Implementation Challenges

PurposeConsequent on the widespread of fair value (FV) accounting with the coming into effect of International Financial Reporting Standard (IFRS) 13, this study investigated the post-implementation challenges of FV measurement from the perspective of auditors in Nigeria.Design/methodology/approachData collection was through a structured-questionnaire administered on auditors from diverse audit firm backgrounds in terms of size, international affiliation and global presence. Statistical techniques such as cluster analysis, factor analysis and ANOVA were applied to analyse data obtained from 277 respondents.FindingsIt was observed that the severest challenge of FV measurement bothers on the paucity of information for valuation of items. The magnitude of the challenges of applying FV measurement in various industry sectors appears similar. Although audit firm attributes affect perception on the challenges, there is concurrence among auditors that manipulation of values of assets/liabilities with no market price during estimation, leveraging on non-availability of market information on assets/liabilities by managers to manipulate financial statements, inappropriateness/non-compliance of valuation methods with IFRS 13, and low level of awareness among preparers of financial reports are notable post-implementation challenges of FV measurement.Practical implicationsConsidering that the adoption of IFRS 13 impliedly places responsibilities on countries applying the standard to develop institutional structures that facilitate the valuation of items using FV measurement, it seems the establishment of such apparatus may be a sine qua non for fully realising the socio-economic benefits of applying FV accounting.Originality/valueThe study contributes to knowledge by exposing the practical challenges of FV measurement and accounting estimates typical of a developing country that has fully implemented international accounting standards. Moreover, findings from this study could be compared with the result of investigations conducted in other jurisdictions to gain a deeper and wider insight into the challenges of FV measurement with a view to proffering solutions to the post-implementation challenges of IFRS 13.

Does fair value accounting contribute to market price volatility? An experimental approach

2013 ◽  
Vol 54 (4) ◽  
pp. 1033-1061 ◽  
Author(s):  
Carl Brousseau ◽  
Michel Gendron ◽  
Philippe Bélanger ◽  
Jonathan Coupland
Keyword(s):  
Experimental Approach ◽  
Market Price ◽  
Price Volatility ◽  
Fair Value ◽  
Fair Value Accounting

FROM LEAN PRODUCT DEVELOPMENT TO LEAN INNOVATION: SEARCHING FOR A MORE VALID APPROACH FOR PROMOTING UTILITARIAN AND EMOTIONAL VALUE

2014 ◽  
Vol 11 (02) ◽  
pp. 1450008 ◽  
Author(s):  
MARTIN GUDEM ◽  
MARTIN STEINERT ◽  
TORGEIR WELO
Keyword(s):  
Product Development ◽  
Customer Value ◽  
Incremental Innovation ◽  
Lean Principles ◽  
Lean Product Development ◽  
A Value ◽  
Utilitarian Value ◽  
Emotional Value ◽  
Value Concept

This paper considers the role of lean product development (LPD) as part of a company's overall innovation strategy. Our discussion contends that the value-concept in LPD is too strongly tied to product features, and that this may lead to: (i) overemphasis on utilitarian value, (ii) preference for reliability over validity, and (iii) a defensive approach to market-trends. These factors can compromise the philosophy's ability to maximize customer value, and represent a challenge in making LPD fit beyond incremental innovation in the technological domain. Lean innovation (LI) is therefore introduced as an extension of LPD, building on a value concept that embraces emotional as well as utilitarian characteristics. It is suggested that lean principles should not be limited to product development, but should concern all aspects of a company's innovation efforts relevant to offering a pleasurable customer experience.

A Simple Model for Option Pricing with Jumping Stochastic Volatility

1998 ◽  
Vol 01 (04) ◽  
pp. 487-505 ◽  
Author(s):  
Stefano Herzel
Keyword(s):  
Implied Volatility ◽  
Market Price ◽  
Volatility Risk ◽  
Simple Modification ◽  
Closed Form Solutions ◽  
Black Scholes Model ◽  
A Value ◽  
Black Scholes ◽  
Delta Hedging ◽  
Actual Price

This paper proposes a simple modification of the Black–Scholes model by assuming that the volatility of the stock may jump at a random time τ from a value σa to a value σb. It shows that, if the market price of volatility risk is unknown, but constant, all contingent claims can be valued from the actual price C0, of some arbitrarily chosen "basis" option. Closed form solutions for the prices of European options as well as explicit formulas for vega and delta hedging are given. All such solutions only depend on σa, σb and C0. The prices generated by the model produce a "smile"-shaped curve of the implied volatility.

scholarly journals A Note On Accounting For Employee Stock Options When Reporting Diluted Earnings Per Share Under The Treasury Stock Method

2011 ◽  
Vol 6 (10) ◽  
Author(s):  
David T. Doran
Keyword(s):  
Stock Options ◽  
A Priori ◽  
Market Price ◽  
Accounting Standards ◽  
Fair Value ◽  
Financial Accounting ◽  
Employee Stock Options ◽  
Financial Accounting Standards Board ◽  
Earnings Per Share ◽  
Free Environment

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">Firms must currently apply the fair value method in determining the amount of employee compensation incurred in the case of employee stock options.<span style="mso-spacerun: yes;">&nbsp; </span>Current GAAP also requires that for purposes of calculating diluted earnings per share (EPS), the treasury stock method be applied where the assumed proceeds from exercise of the optioned shares is used to purchase shares of the firm&rsquo;s stock at its average market price of the earnings period.<span style="mso-spacerun: yes;">&nbsp; </span>These incremental shares increase the denominator for purposes of calculating diluted EPS.<span style="mso-spacerun: yes;">&nbsp; </span>These requirements are consistent across the pronouncements of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).<span style="mso-spacerun: yes;">&nbsp; </span>This study extends the work of Doran (2005) and Doran (2008).<span style="mso-spacerun: yes;">&nbsp; </span>These previous studies found that applying the treasury stock method where shares are assumed purchased at the average for the period price (instead of end of year price) understates the number of incremental shares (the denominator), which overstates diluted EPS.<span style="mso-spacerun: yes;">&nbsp; </span>However, these previous works assumed that no shares were actually purchased for the treasury during the earnings period.<span style="mso-spacerun: yes;">&nbsp; </span>The FASB indicates one reason that the average for the period price is appropriate is because if treasury shares purchases were to occur, &ldquo;the shares would be purchased at various prices, not at the price at the end of the period.&rdquo;<span style="mso-spacerun: yes;">&nbsp; </span>This study tests the notion that the average for the period price is appropriate under circumstances where the firm actually purchases shares for the treasury at its average market price during the earnings period.<span style="mso-spacerun: yes;">&nbsp; </span>This paper employs a simple one period model that assumes a risk free environment with complete certainty.<span style="mso-spacerun: yes;">&nbsp; </span>The model allows comparison of computed EPS with an a priori known, correct amount.<span style="mso-spacerun: yes;">&nbsp; </span>Consistent with Doran (2005) and Doran (2008), the results here again indicate that assuming purchase of treasury shares at their average market price of the earnings period understates the EPS denominator which results in EPS overstatement. <span style="mso-spacerun: yes;">&nbsp;</span>Correct diluted EPS is derived when the shares assumed purchased under the treasury stock method are acquired at the higher period ending market price.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p>

scholarly journals A Model for the Economic Evaluation of Cultural Ecosystem Services: The Recreational Hunting Function in the Agroforestry Territories of Tuscany (Italy)

2021 ◽  
Vol 13 (20) ◽  
pp. 11229
Author(s):  
Claudio Fagarazzi ◽  
Carlotta Sergiacomi ◽  
Federico M. Stefanini ◽  
Enrico Marone
Keyword(s):  
Economic Evaluation ◽  
Ecosystem Services ◽  
Online Survey ◽  
Evaluation Method ◽  
Negative Binomial ◽  
Economic Value ◽  
Market Price ◽  
Consumer Surplus ◽  
Statistical Regression ◽  
Cultural Ecosystem Services

Cultural ecosystem services (CESs) are non-material benefits generated by natural and human ecosystems that substantially contribute to human wellbeing. Estimating the monetary value of CESs is challenging because there is no real market for these services and therefore there is no actual market price. This study seeks to define an economic evaluation method for these services, with special reference to a recreational CES that has so far received little discussion: hunting. We conducted an online survey in the province of Siena (Tuscany, Italy). The Consumer Surplus estimate of hunters was made using the travel-cost method with a detailed analysis of the annual expenditure on hunting activities, and a negative binomial statistical regression. The results reflect the nature of hunting activity and show the dynamics that have occurred over recent decades. In fact, whereas hunting used to be strongly connected to the rural world as it was an income supplement for local communities, nowadays it has turned into an elitist and almost exclusively recreational activity. In any case, knowing the economic value of ecosystem services constitutes an essential background for planning effective land management and development policies in the short and long term.

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