scholarly journals UNDERSTANDING BIG DATA-FAIR VALUE MEASUREMENT MODEL OF BIOLOGICAL ASSETS

2021 ◽  
Vol 6 (24) ◽  
pp. 01-08
Author(s):  
Nurshahirah Salehuddin ◽  
Suraiya Ibrahim ◽  
Wan Salha Yusoff
Keyword(s):  
Big Data ◽  
Agricultural Sector ◽  
Fair Value ◽  
Measurement Model ◽  
Biological Properties ◽  
Agriculture Sector ◽  
Daunting Task ◽  
Fair Value Measurement ◽  
The Cost ◽  
Value Measurement

This research establishes a Big Data-Fair Value Measurement Model of Biological Assets using a Smart Farming Approach. The aim of the study is to gather literature knowledge about the judgment of biological assets. The use of big data and innovative farming in the agricultural sector is relatively new in Malaysia, making people wonder about its effectiveness, whether positive or negative. However, determining fair value can be a daunting task due to the existence of personal biological properties and the variety of specimens (offspring), classes, and conditions. Agricultural sectors need to be more emphasised by many parties as the increases in cost production is not a trivial matter that can be ignored. There have been pressures from foreign countries such as Thailand, Vietnam, and Indonesia in the agricultural sector. Malaysia faces one major challenge: the cost of production, including wages and inputs, is relatively higher. (Rozhan 2019). Agricultural accounting is a minor standard, but it has a broad scope and a significant impact on agricultural businesses based on the accounting perspective, the MFRS141/IAS 41. The standard improves the transparency of the cost to replace capital (by allowing for depreciation and amortisation) and better reflects the productive lifespan of assets in agricultural operations. However, the application of MFRS 141 Agriculture is still relatively new in Malaysia, and a thorough examination of the literature indicates several gaps and deficiencies. This literature review is vital to support the study on Big Data-Fair Value Measurement Model of Biological Assets as the agricultural sector's involvement was recently popular. It might also offer some good ideas for handling problems involving the fair value measurement. Future studies will help the Ministry of Agriculture and Food Industries, agriculture sector workers, in terms of practical perspective. Therefore, the future result of the study suggests an improvement within the agriculture sector related to the treatment in their fair values, issues, and strategies.

The decision usefulness of reported changes in fair values and fair value measurement-related disclosure for debtholders: evidence from Australian real estate industry

2020 ◽  
Vol 33 (6) ◽  
pp. 729-747
Author(s):  
Pinprapa Sangchan ◽  
Haiyan Jiang ◽  
Md. Borhan Uddin Bhuiyan
Keyword(s):  
Real Estate ◽  
Financial Reporting ◽  
Fair Value ◽  
Cost Of Debt ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Fair Value Measurement ◽  
The Cost ◽  
Value Measurement

Purpose This paper aims to examine the information content of changes in fair values of investment property reported under international accounting standards (IAS) 40 and International Financial Reporting Standards (IFRS) 13 to debtholders. This study further examines the effect of fair value hierarchy inputs, valuer types and the quality of fair value measurement-related disclosure on the information usefulness of changes in fair value. Design/methodology/approach This paper performs a panel regression on the cost of debt capital and changes in fair value of investment properties, and fair value measurement features using data covering periods 2007–2015 from Australian real estate companies. Findings The findings suggest that changes in fair value of investment property are informative about the real estate firm’s future cash flow to debtholders. Also, the findings show that the use of unobservable inputs in an active market (Level 3 inputs) and Level 2 has no different impacts on the cost of debts. Also, this paper documents that employing the directors solely in valuation may lead to a higher cost of debts. Furthermore, this paper reports that an extensive fair value disclosure appears no additional value in the debt decision. Originality/value Collectively, the findings indicate that although the use of unobservable inputs is common in the real estate sector, information on the changes of the fair value of investment properties are informative to debtholders. The findings have important implications for accounting standard setters to consider revisiting the IAS 40 and IFRS 13 on whether the independent valuation should be required and whether the extensive disclosure requirement is worthwhile.

The Relevance of the Fair Value Measurement Hierarchy: A Holistic Perspective

2019 ◽  
Author(s):  
Andrei Filip ◽  
Ahmad Hammami ◽  
Zhongwei Huang ◽  
Anne Jeny ◽  
Michel Magnan ◽  
...  
Keyword(s):  
Fair Value ◽  
Holistic Perspective ◽  
Fair Value Measurement ◽  
Value Measurement

The effect of accounting methods on financial reporting quality

2018 ◽  
Vol 60 (6) ◽  
pp. 1401-1411
Author(s):  
Andrain Hadiyanto ◽  
Evita Puspitasari ◽  
Erlane K. Ghani
Keyword(s):  
Financial Reporting ◽  
Palm Oil ◽  
Reporting Quality ◽  
Fair Value ◽  
Financial Information ◽  
Financial Reporting Quality ◽  
Content Type ◽  
Historical Cost ◽  
Fair Value Measurement ◽  
Value Measurement

Purpose This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether using fair value method or the historical cost method on biological asset provides different financial reporting quality. Design/methodology/approach This study uses data from 38 agricultural companies that are members of the Roundtable on Sustainable Palm Oil. The annual reports of 38 companies from the Palm Oil Growers over a five-year period starting from 2011 to 2014 are analysed. Findings This study shows that companies using historical cost measurement produce less reliable and less relevant information compared to the companies that are using fair value measurement. Research limitations/implications The results in this study imply that the use of fair value measurement improves the quality of financial information. Practical implications This study supports IASB’s justification of developing IAS 41 as the principle-based standard that better represents the financial information related to biological asset and subsequently lead to good accountability and harmonisation practices. Originality/value This study provides evidence on the best measurement to be used in agriculture activities using a larger sample size of few countries. In addition, this study contributes to the existing literature on the effect of accounting methods on financial reporting quality.

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