scholarly journals Fair-value-accounting, inactieve markten en procycliciteit

2010 ◽  
Vol 84 (1) ◽  
pp. 7-26
Author(s):  
Bert-Jan Bout ◽  
Ralph Ter Hoeven ◽  
Henk Langendijk
Keyword(s):  
Best Practices ◽  
Accounting Standards ◽  
Fair Value ◽  
Financial Accounting ◽  
Advisory Panel ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Fair Value Accounting ◽  
Expert Advisory ◽  
Mate Waarin

In deze bijdrage besteden wij aandacht aan de gevolgen van inactiviteit van de markten voor de wijze waarop de fair value van financiële instrumenten wordt bepaald. De bestaande IFRS hieromtrent en de aanvullende guidance van de door de Financial Accounting Standards Board (FASB) en International Accounting Standards Board (IASB) opgerichte Expert Advisory Panel (EAP) worden in dit kader behandeld. Tevens bespreken wij de vermeende procyclische werking van waardering tegen fair value aan de hand van een aantal onderzoeksrapporten die nader ingaan op de achtergronden en oorzaken van de invloed van fair-value-accounting (FVA) op het financiële systeem. In een jaarrekeningonderzoek onder alle banken en verzekeraars binnen de ‘FTSE Eurofirst 300’-index, wordt nagegaan in hoeverre de financiële activa en financiële verplichtingen op fair value zijn gewaardeerd; de gevoeligheid voor fair-value-veranderingen wordt daarbij op netto-basis beoordeeld. Daarnaast is onderzocht of er een verband bestaat tussen de grootte van een bank en de mate waarin financiële activa en financiële verplichtingen op fair value zijn gewaardeerd. Ook wordt onderzocht, aan de hand van de fair-value-hiërarchie, in hoeverre marktinactiviteit invloed heeft gehad op de wijze waarop de financiële instrumenten zijn gewaardeerd. Tevens geven wij enkele best practices op een aantal toelichtingsgebieden. Het artikel sluiten wij af met een nabeschouwing.

scholarly journals MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN - GOODWIL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Deddy Kurniawansyah
Keyword(s):  
Research Method ◽  
Intangible Assets ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Fair Value Accounting ◽  
Literature Study ◽  
Accounting Standard

This literature study explains and describe the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are in some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, thetreatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature, especially accounting treatment of goodwill as intangible assets in the financial statements of various countries such as Indonesia, America and the England.Keyword :Goodwiil, Impairment, Financial Accounting Standard

scholarly journals An Evaluation Of The Implementation Of Fair Value Accounting: Impact On Financial Reporting

2011 ◽  
Vol 9 (1) ◽  
Author(s):  
Karen T. Cascini ◽  
Alan DelFavero
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
The United States ◽  
Financial Accounting ◽  
Financial Assets ◽  
Financial Accounting Standards Board ◽  
Continuous Change ◽  
Fair Value Accounting ◽  
The Cost

<p class="MsoNormal" style="text-justify: inter-ideograph; text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: #0d0d0d; font-size: 10pt; mso-themecolor: text1; mso-themetint: 242;"><span style="font-family: Times New Roman;">The accounting industry is in a state of continuous change.<span style="mso-spacerun: yes;">&nbsp; </span>In the United States, the historical cost principle has traditionally been the foundation of accounting.<span style="mso-spacerun: yes;">&nbsp; </span>Until recently, assets and liabilities have been required to be recorded at their acquisition prices, with the exception of designated financial assets and financial liabilities.<span style="mso-spacerun: yes;">&nbsp; </span>However, the Financial Accounting Standards Board (FASB) has now created accounting standards that are distant from the cost principle.<span style="mso-spacerun: yes;">&nbsp; </span>Statement of Financial Accounting Standards No. 157: Fair Value Measurements, issued in September 2006 (FAS157, now codified as ASC 820) and Statement of Financial Accounting Standards No. 159: The Fair Value Option for Financial Assets and Financial Liabilities, created in February 2007 (FAS159, now ASC 825-10-25), significantly increases the viability of fair value accounting. The purpose of this paper is to illustrate the benefits and pitfalls of fair value and the corresponding affects on various stakeholders. <span style="mso-spacerun: yes;">&nbsp;&nbsp;</span></span></span></p>

scholarly journals Uma investigação e uma proposição sobre o conceito e o uso do valor justo

2007 ◽  
Vol 18 (spe) ◽  
pp. 09-18 ◽  
Author(s):  
Sérgio de Iudícibus ◽  
Eliseu Martins
Keyword(s):  
Accounting Standards ◽  
Fair Value ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Sfas 133 ◽  
International Accounting Standards Board

Trata o presente artigo de uma investigação, no sentido de análise, do conceito do Fair Value (Valor Justo), tão debatido nos anos mais recentes e que promete ser, se generalizada sua aplicação nas demonstrações contábeis, uma verdadeira revolução valorativa. No decorrer do trabalho são analisadas, resumidamente, no que se refere aos aspectos mais importantes, as disposições e conceituações sobre Valor Justo apresentadas pelo IASB (International Accounting Standards Board), pelo FASB (Financial Accounting Standards Board) e pelas Normas Brasileiras. A análise efetuada tem um caráter inicialmente semântico, no sentido de expressar, da forma mais clara possível, o sentido das palavras contidas nas conceituações. Em seguida, é feita uma análise qualitativa, visando extrair e avaliar o efetivo impacto das conceituações no avanço das práticas contábeis. Inicialmente, é importante ressaltar que a conceituação de Valor Justo é bastante antiga. Em 1939, Kenneth MacNeal, em seu pioneiro trabalho, Truth in Accounting, já definia a expressão, de forma brilhante; na verdade, falava em fair and true, atribuindo às valorações, sempre, um significado econômico. A discussão sobre Valor Justo acentuou-se sobremaneira, ganhando até contornos sensacionalistas, a partir do SFAS 133, emitido pelo FASB em 1998. Através da análise e investigação assim procedidas, é avaliada, por comparação, a eficácia e "justeza" do conceito, ou melhor, conceitos, de Valor Justo em face dos critérios de Custo Histórico, Custo Corrente de Reposição e outros, já praticados há mais tempo pelos contadores. Sugere-se, ao final, um período de experimentação com informações complementares ao modelo tradicional, e não a pura e simples substituição deste último, permitindo então à Contabilidade Positiva o papel de, mediante suas pesquisas empíricas, avaliar a relação entre a utilidade e o custo dessas alternativas antes de qualquer precipitada decisão.

“Unreliable Accounts: How Regulators Fabricate Conceptual Narratives to Diffuse Criticism” by Karthik Ramanna: A Comment on Ideological Capture

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Vera Palea
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Financial Stability ◽  
Accounting Standards ◽  
Fair Value ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Fair Value Accounting ◽  
Balance Sheets ◽  
Accounting Practice

Abstract Karthik Ramanna in ‘Unreliable accounts: How regulators fabricate conceptual narratives to diffuse criticism’ considers how the Financial Accounting Standards Board (FASB) justified a conjunctural break from historic cost accounting (HCA) to Fair Value Accounting (FVA). Karthik’s paper explores how the US Financial Accounting Standards Board (FASB) legitimized the introduction of fair value accounting (FVA). This fundamental reorientation of financial reporting practice can, he argues, be understood within a framing device: conceptual veiling. Firstly, the FASB is (suspected to be) captured by the interests of investors and capital market actors. Secondly, the FASB needed to construct new narratives to enable this reorientation in accounting practice and this was achieved with changes to the governing conceptual framework. An alternative framing device is offered in this review, that of the financialization of company financial reporting and implications for company viability as opposed to a capital market efficiency perspective. Financialized accounting facilitates the valuation of a range of asset classes to a market value. These asset valuations are speculative in nature. FVA accounting imports speculative capital market risk onto company balance sheets and this can threaten company financial stability and viability for a going concern.

Do Financial Statement Users Judge Relevance Based on Properties of Reliability?

2012 ◽  
Vol 87 (4) ◽  
pp. 1335-1356 ◽  
Author(s):  
Kathryn Kadous ◽  
Lisa Koonce ◽  
Jane M. Thayer
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Firm Valuation ◽  
Financial Accounting ◽  
Financial Statement ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Representational Faithfulness ◽  
The Relationship

ABSTRACT Relevance and reliability (now referred to as “representational faithfulness”) are qualities of financial information that both the Financial Accounting Standards Board and the International Accounting Standards Board use in setting standards for financial reporting. Despite their importance, very little research has addressed how financial statement users apply these constructs. Via experiments set within the fair value context, we show that users do not view them as independent constructs. Instead, variations in properties that are associated with the reliability of a measurement influence users' assessments of the relevance of fair value. The relationship between assessed relevance and assessed reliability is unidirectional, in that factors underlying reliability influence judgments of relevance, but factors underlying relevance do not influence judgments of reliability. Our findings are important because inappropriate assessments of relevance can influence firm valuation. The results are particularly meaningful in the context of fair value because such measurements can vary widely in reliability. JEL Classifications: M41.

THE EVOLUTION OF THE RELATIONSHIP BETWEEN THE US FINANCIAL ACCOUNTING STANDARDS BOARD AND THE INTERNATIONAL ACCOUNTING STANDARD SETTERS: 1973–2008

2012 ◽  
Vol 39 (1) ◽  
pp. 1-51 ◽  
Author(s):  
Robert J. Kirsch
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Working Relationships ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Accounting Standard ◽  
Staff Members ◽  
The Us ◽  
The Relationship

ABSTRACT Utilizing archival materials as well as personal interviews and correspondence with personnel of the Financial Accounting Standards Board (FASB) and International Accounting Standards Committee/Board (IASC/B), including former Board chairmen and staff members, this paper examines the development of the working relationships between the FASB and the IASC/B from their earliest interactions in 1973 through the transformation of the IASC into the IASB and the Convergence Program rooted in the 2002 Norwalk Agreement up to 2008.

scholarly journals Valuation Implications of FAS 159 Reported Gains and Losses From Fair Value Accounting for Liabilities

2021 ◽  
pp. 0148558X2110178
Author(s):  
Sung Gon Chung ◽  
Cheol Lee ◽  
Gerald J. Lobo ◽  
Kevin Ow Yong
Keyword(s):  
Stock Returns ◽  
Accounting Standards ◽  
Institutional Ownership ◽  
Fair Value ◽  
Negative Association ◽  
Financial Accounting ◽  
Fair Value Accounting ◽  
Economic Implications ◽  
Current Period ◽  
Gains And Losses

This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter, FAS 159). We find a positive correspondence between a firm’s FAS 159 fair value liability gains and losses and current period stock returns, consistent with the notion that these gains and losses are priced by equity investors. However, further analysis indicates that fair value gains and losses from liabilities have a statistically significant negative association with future returns, suggesting that investors misprice this earnings component and subsequently correct the mispricing. We also find that the negative association for fair value gains is stronger for firms with lower levels of institutional ownership.

Accounting for leases – lessons from COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alan Teixeira
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Accounting Standards Board ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Setting Process

Purpose The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have given relief to lessees in response to the coronavirus (COVID-19) pandemic. However, it is not clear why any relief from the requirements in International Financial Reporting Standards (IFRS) or the Accounting Standards Codification (ASC) should be necessary. The purpose of this paper is to highlight weaknesses in how the IASB and FASB developed their leases Standards, and why those Standards are not robust enough to cope with a shock to the economic system. Design/methodology/approach The COVID-19 relief suspends some features of the leasing requirements rather than changing them. What if other economic or regulatory events cause the same circumstances to arise? Findings Have COVID-19 exposed weaknesses in the leasing standards that should have been avoided when they were developed or is COVID-19 the problem? Originality/value Analysis of actual board discussions and staff papers is unusual and provides insights into the standard-setting process.

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