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Com objetivo apresentar a aplicação do Método de Custeio do Ciclo de Vida Adicionado (CCV Add) ou Life Cycle Costing (LCC) como alternativa na mensuração de um ativo biológico, comparando-o com o método de avaliação Fair Value, a presente pesquisa trata de alternativas de mensuração do Pinus taeda. Metodologicamente, a pesquisa caracteriza-se como descritiva, de abordagem quantitativa, bibliográfica, documental e estudo de caso com amostragem não-probabilística e por conveniência. A coleta de dados se deu em uma propriedade rural localizada no Município de Mallet/PR. Foram levantados dados relativos aos custos de implantação e manejo da cultura bem como os resultados advindos com a colheita e venda e aplicação das metodologias de avaliação de ativos biológicos. Os resultados apontam que existem diferenças significativas nas formas de avaliação dos custos e resultados. No entanto, não existem impactos financeiros no fluxo de caixa, independentemente de qual estratégia seja utilizada para avaliação dos ativos biológicos. Existem diferenças contábeis significativas na avaliação dos ativos e resultados patrimoniais e tal fato repercute nos demonstrativos financeiros.

We address how value relevance of accounting information evolved as the new economy developed. Prior research concludes that accounting information—primarily earnings—has lost relevance. We consider more accounting items and find no decline in combined value relevance from 1962 to 2018. We assess evolution in each item’s value relevance and find increases, most notably for items related to intangible assets, growth opportunities, and alternative performance measures, which are important in the new economy. The number of relevant items also increases. We also consider separately new economy, old economy profit, and old economy loss firms. The trends are more pronounced for, but extend beyond, new economy firms. We base inferences on a nonparametric approach that does not require specifying the valuation relation. Taken together, our findings reveal an evolution to a more nuanced, but not declining, relation between accounting information and share price. JEL Classifications: C14; G10; G18; M40; M41.

Exploiting detailed disclosures mandated by Accounting Standard Codification (ASC) 820, we provide evidence for the return relevance of Level 3 fair value remeasurements for a comprehensive sample of U.S. listed banks. We find that Level 3 remeasurements recognized in earnings are more return relevant than those recognized in other comprehensive income (OCI). Our results suggest that Level 3 remeasurements in OCI partially reflect transitory illiquidity discounts that are less relevant when banks have the ability to hold the underlying assets. The regulatory capital treatment of OCI also affects the return relevance of Level 3 remeasurements in OCI. Importantly, we find no differences in the return relevance of realized versus unrealized Level 3 remeasurements in earnings, allaying concerns that investors perceive unrealized Level 3 remeasurements of lesser quality. Overall, our findings support the usefulness of the segregated disclosures of Level 3 fair value remeasurements. Data Availability: Data are available from the public sources cited in the text.

Aan de hand van SVB casus, een pleidooi voor het waarderen tegen fair value.

El presente trabajo tiene como fin implementar las NIC 16 y 37, que trata el tratamiento que se le dará a la Propiedades, Planta y Equipo con respecto al desmantelamiento, esto aplicado a la compañía CB SAS, se hará a través de una metodología propuesta que tendrá como fin la incorporación y cambio de los registros contables para la preparación y presentación de estados financieros que estarán acordes a la normativa vigente, permitiendo que la toma de decisiones sean oportunas y asertivas de acuerdo a las necesidades de esta. The purpose of this work is to implement IAS 16 and 37, which deals with the treatment that will be given to Property, Plant and Equipment with respect to dismantling, this applied to the company CB SAS, will be done through a proposed methodology that Its purpose will be the incorporation and change of accounting records for the preparation and presentation of financial statements that will be in accordance with current regulations, allowing decision-making to be timely and assertive according to its needs. Especialista en Revisoría Fiscal y Auditoría Externa http://www.ustabuca.edu.co/ustabmanga/presentacion Especialización

The application of fair value accounting represents a major challenge in the production of financial information that meets the decision-making needs of investors and companies. In this context, several researchers have examined the notion of fair value. In order to make a significant contribution to this field, we have undertaken a systematic review based on an in-depth analysis of 109 relevant articles. The central research question of this study is to analyze the evolution of fair value and its contribution to valuation models. We approached this question by examining the various themes addressed in the selected articles. The main results of our systematic review highlight several important findings. Firstly, we observed a significant evolution of fair value over time, with major developments in conceptual frameworks and valuation practices. Secondly, we identified the main research themes addressed in the articles, such as the effect of fair value on the quality of financial information, its impact on risk management and the challenges associated with its practical application. In terms of research implications, this study provides an overview of the evolution of fair value and its importance in valuation models. The results underline the need to continue deepening our understanding of this complex concept and its implications for stakeholders. In addition, the research themes identified offer interesting avenues for future work in the field of fair value. In conclusion, this systematic review aims to clarify the evolution of fair value and its contribution to valuation models. Keywords: fair value; fair value measurement; financial crisis; IFRS 13; implications of IFRS 13. JEL Classification: M41 Type of paper: Theoretical Research, L'application de la comptabilité à la juste valeur représente un enjeu majeur dans la production d'informations financières répondant aux besoins décisionnels des investisseurs et des entreprises. Dans le cadre de cette problématique, plusieurs chercheurs se sont penchés sur la notion de juste valeur. Ainsi, afin d'apporter une contribution significative à ce domaine, nous avons entrepris une revue systématique basée sur l'analyse approfondie de 109 articles pertinents. La question de recherche centrale de cette étude est d'analyser l'évolution de la juste valeur ainsi que sa contribution aux modèles d'évaluation. Nous avons abordé cette question en examinant les différents thèmes traités dans les articles sélectionnés. Les principaux résultats de notre revue systématique mettent en évidence plusieurs constatations importantes. Tout d'abord, nous avons observé une évolution significative de la juste valeur au fil du temps, avec des développements majeurs dans les cadres conceptuels et les pratiques d'évaluation. Ensuite, nous avons identifié les principaux thèmes de recherche abordés dans les articles, tels que l'effet de la juste valeur sur la qualité de l'information financière, son impact sur la gestion des risques et les défis liés à son application pratique. En termes d'implications de recherche, cette étude fournit une vision globale de l'évolution de la juste valeur et de son importance dans les modèles d'évaluation. Les résultats soulignent la nécessité de continuer à approfondir la compréhension de ce concept complexe et de ses implications pour les parties prenantes. De plus, les thèmes de recherche identifiés offrent des pistes intéressantes pour les futurs travaux dans le domaine de la juste valeur. En conclusion, cette revue systématique vise à clarifier l'évolution de la juste valeur et sa contribution aux modèles d'évaluation. Mots clés: juste valeur ; évaluation de la juste valeur ; crise financière ; IFRS 13 ; implication de l'IFRS 13. JEL Classification: M41 Type du papier: Recherche Théorique

El trabajo iniciará con una revisión de la Política Contable actual de Propiedad Planta y Equipo aprobada en la empresa Casinos de la Región SAS. Además, se identificarán los aspectos normativos vigentes en la sección 17 de las Normas Internacionales de Información Financiera para Pymes. Realizando una revisión de la política aplicada en la emisión de los Estados Financieros bajo NIIF. Finalizando con la evaluación de la actualización de la política contable y reflejando el impacto en los Estados Financieros para obtener una información financiera más acorde a la realidad económica de este rubro. La metodología utilizada para determinar el valor razonable de las construcciones, edificaciones y terrenos, en el presente trabajo, se fundamenta en el índice de precios para la vivienda usada – IPVU, que se constituye como una alternativa de medición técnica que no genera un esfuerzo desproporcionado para la empresa y que además le puede brindar a la administración de Casinos de la Región SAS un método técnico para calcular el valor razonable de sus inmuebles y terrenos al final de cada año y así presentar un valor patrimonial acorde a las situaciones de mercado. En conclusión, si la entidad decide modificar su política en la medición posterior de PPYE, para las construcciones, edificaciones y terrenos pasando del modelo del costo al modelo de revaluación, podrá aplicarse de forma prospectiva, y según los resultados obtenidos, podría significarles un fortalecimiento patrimonial aproximadamente del 15%, teniendo en cuenta que para efectos del trabajo tomamos una muestra significativa del rubro. The work will begin with a review of the current Accounting Policy for Property, Plant and Equipment approved in the company Casinos de la Región SAS. In addition, the regulatory aspects in force in section 17 of the International Financial Reporting Standards for SMEs will be identified. Carrying out a review of the policy applied in the issuance of Financial Statements under IFRS. Finishing with the evaluation of the updating of the accounting policy and reflecting the impact on the Financial Statements to obtain financial information more in line with the economic reality of this item. The methodology used to determine the fair value of constructions, buildings and land, in this paper, is based on the price index for used housing - IPVU, which is constituted as a technical measurement alternative that does not generate a disproportionate effort. for the company and that can also provide the administration of Casinos de la Región SAS with a technical method to calculate the fair value of its properties and land at the end of each year and thus present a patrimonial value according to market situations. In conclusion, if the entity decides to modify its policy in the subsequent measurement of PPYE, for constructions, buildings and land, going from the cost model to the revaluation model, it may be applied prospectively, and depending on the results obtained, it could mean a strengthening equity of approximately 15%, taking into account that for the purposes of the work we took a significant sample of the item. Especialista en Revisoría Fiscal y Auditoría Externa http://www.ustabuca.edu.co/ustabmanga/presentacion Especialización

In this paper, we study whether firms manage their pension risk exposures within an integrated corporate risk management framework or they manage their pension and firm risk exposures independently following the adoption of fair value pension reporting regulation (IAS 19). Controlling for known factors affecting the risk-taking in pension plan investments, we document a robust negative association both at the cross-section and over time between pension risk and firm systematic risk and operating asset risk during the post-IAS 19 adoption period. The findings suggest that firms manage pension risk as an integral part of firm risk, consistent with a coordinated risk management explanation. Overall, our evidence highlights that pension investment strategy is a dynamic process that is ultimately determined by sponsoring firms' strategic corporate risk management considerations and the important role that changing pension reporting regulation plays in shaping these dynamics. Our conclusions have potential wider implications for ongoing reforms in financial reporting and disclosure policy settings.

The increasingly service-based U.S. economy relies on innovation. While there is considerable research on the importance of certain innovative activities, such as patents, less attention has been paid to unpatented innovation, about which there is naturally less publicly available information. Our study exploits disclosure on the fair value of acquired innovation to show that unpatented innovation plays an important, though often ignored, role in merger value creation. We detail the importance of unpatented technology and show that traditional approaches that rely only on R&D expenditures and patents lead to both misclassification of merger types and underestimates of the impact of innovation in value creation. Our evidence suggests that, on average, unpatented innovation accounts for a larger portion of synergies. We further show that higher (lower) gains accrue to the acquirer (the target) in relation to unpatented innovation, consistent with limited publicly available information about unpatented innovation reducing the target’s bargaining power.

La dinámica de la valoración de activos biológicos y la contabilidad ha generado diferentes puntos de vista tanto a nivel profesional como académico por su importancia en el sector agrícola. La NIC 41 y su aplicación del valor razonable en la valoración de activos biológicos es una norma fundamental para que las empresas tengan una estandarización en los informes financieros con el propósito de brindar información con transparencia y calidad. El objetivo de este trabajo fue realizar un análisis bibliométrico de los trabajos publicados sobre la valoración de activos biológicos en las empresas del sector agropecuario desde el año 2010 – 2021, analizar la dinámica de la valoración de activos biológicos mediante una revisión bibliométrica realizada para los años 2000 al 2021 a través de la herramienta VOSviewer, partiendo de una base de revistas científicas de Scopus y de Google Scholar. Los resultados permitieron identificar 21 revistas asociadas al tema objeto de estudio, analizando la distribución cronológica de los años publicados, metodologías aplicadas y publicaciones por países. En el análisis bibliométrico se evidencia que los países con más publicaciones son España con un 24% y Colombia con un 14%. En conclusión, se determina que para varias empresas el valor razonable les aporta más exactitud a sus estados financieros, sin embargo, para otras empresas es mejor manejar el costo histórico toda vez que no existe mercado para sus activos biológicos. The dynamics of the valuation of biological assets and accounting has generated different points of view both at an academic professional level and because of its importance in the agricultural sector. IAS 41 and its application of fair value in the valuation of biological assets is a fundamental rule for companies to have a standardization in financial reports in order to provide information with transparency and quality. The objective of this work was to carry out a bibliometric analysis of the published works on the valuation of biological assets in companies in the agricultural sector from the year 2010 - 2021, to analyze the dynamics of the valuation of biological assets through a bibliometric review carried out for the years 2000 to 2021 through the VOSviewer tool, based on a database of scientific journals from Scopus and Google Scholar. The results made it possible to identify 22 journals associated with the subject under study, analyzing the chronological distribution of the years published, applied methodologies and publications by country. The bibliometric analysis shows that the countries with the most publications are Spain with 24% and Colombia with 14%. In conclusion, it is determined that for several companies the fair value provides more accuracy to their financial statements, however, for other companies it is better to manage the historical cost since there is no market for their biological assets. Especialista en Gerencia Tributaria http://www.ustabuca.edu.co/ustabmanga/presentacion Especialización

International and U.S. accounting standards mandate a one-step quantitative impairment test for goodwill and other indefinite-lived intangibles, but U.S. standards allow an optional qualitative assessment before the quantitative test. This option is intended to reduce the complexity and costs of the quantitative test. We demonstrate that U.S. firms using this option have comparatively higher valuations and face higher expected costs for conducting quantitative tests. Using a difference-in-differences research design, we show that firms using this option have a marginally higher incidence of impairments, suggesting that the qualitative assessment does not systematically allow companies to avoid write-downs. Moreover, we do not find clear evidence that using this option decreases the timeliness of impairments or increases monitoring costs for auditors, regulators, and investors. Our study provides evidence about the consequences of a revised impairment approach and speaks to the broader issue of allowing unconditional options and qualitative judgments in financial reporting. Data Availability: Data are available from public sources identified in the text. Hand-collected data are available upon request. JEL Classifications: M41; M42; M48.

As the most successful application of the sharing economy, ride-hailing service is popular worldwide and serves millions of users per day worldwide. Ride-hailing service providers (SPs) usually collect users' personal data to improve their services via big data technologies. However, SPs may also use the collected user data to apply personalized prices to different users, which raises price fairness concerns. In this paper, we propose a smart price auditing system named Spas. Spas allows a user to purchase Fair Price Insurance in the form of Price Auditing Contract, then the price of ride-hailing service (RHS) order will be audited automatically once completed. According to the auditing result, the contract punishes misbehaving SPs and also compensates affected users automatically. By replacing an untrustworthy centralized auditor with carefully designed smart contracts, we construct a decentralized price auditing system which is trustworthy and transparent. We demonstrate a theoretical model for practical payment flows based on real RHS user data and we implement Spas in Hyperledger Fabric to show that decentralizing and automating price auditing for RHS with financial incentives is technically feasible.

It is important to impose a persistent stochastic factor on the underlying asset model to obtain the fair value of financial derivatives with long time-to-maturities. Our empirical study, including the Covid-19 pandemic crisis period, indicates the presence of both fast and slow-scale in the elasticity of variance of S&P 500. This paper extends the elasticity in terms of multiscale stochastic process and obtains a closed form analytic pricing formula for European options and then derive the fair value of Equity-Linked-Annuity (ELA). The Mellin transform method for solving the relevant partial differential equations provides a computationally-efficient pricing formula for the options and the ELA. The prices can be easily calculated simply by taking derivatives of the Black–Scholes option price. Our results reveal the sensitivity of the ELA term structure to the fast-scale or slow-scale related group parameters.

Disposal of unwanted assets to the Public is an important aspect of procurement and store management in many organizations. When equipment is in surplus or obsolete, keeping it through maintenance, parking, insurance or storage may lead to exceedingthe recoverable amount which can be the result of continued use of the equipment. In Kenya, the public sector has certain disposal guidelines and procedures as stated in the Public Procurement and Disposal Act, 2005, and the Public Procurement and DisposalRegulations, 2006. The PPDA applies to all procurement of works, goods, and services, and also, the disposal of assets by all public entities. Disposal of assets in the Public sector is complex due to the multiple interests from various stakeholders against a backdrop of the objectivesit tries to achieve amidst various regulatory bodies or policies which are supposed to be observed. The main goal of this research was to make an assessment on the determinants of the rate of procurement and disposal of the assets in Kenya‟s public institutions, a case of the Judiciary. However, the objectives were used in determining the influence of procurement planning on the disposal of assets; determine how accounting and financial risks affect the disposal of the assets, and identifying the effects of the management methods chosen on the rate of disposal of assets. The study adopted a descriptive study design with a case-study approach to the Judiciary. For purposes of this study, the population of interest was 101 respondents from the Judiciary, which included the department heads, deputies, the disposal committees, and procurement and disposal staff. The study adopted a census sampling technique. The collection of primary data was done using a questionnaire research method The findings show that procurement planning, financial and accounting risks, and choice of management methods affected the rate of assets disposal in the Judiciary to a large extent, It also revealed issues such as corruption, political interference, non-adherence to the PPDA provisions, and PPOA inefficiency as impediments to assets disposal effectiveness and further the study also revealed that the legal framework and regulations had an impact on the relationship between determinants of the rate of procurement and disposal of the assets. The study recommended that The Judiciary‟s procurement department should consider scaling up efforts and work with diligence in stemming out corrupt officers, and ensure total adherence to set PPDA procedures; include strict disposal procurement planning and adopt the well-researched choice of management methods; allocate resources for update training to the procurement and finance staff, and properly explain stakeholders‟ limits and roles when dealing with assets disposal and adopt a proactive and stringent approach

The continuous debate and research related to High Frequency Trading emphasises the importance of performing analysis on topics associated with the interaction of traders with different trading speeds, and the effects of this interaction on price efficiency and market quality. The aim of this paper is directly related to the analysis on how information diffusion may affect order submission decisions of traders, with different trading speeds and how these may affect price efficiency or market quality. The incorporation of information in submitted orders evidently affects prices, but it may also affect market quality for different reasons e.g., the use of low-quality information, or the fact that slower traders may be considering information that has already been incorporated in the market prices by faster traders, hence leading to the mispricing of the fair value. This paper provides findings on the above-mentioned topics, based on a literature review - both theoretical or of empirical studies (which are scarcely available) and leads to the conclusion that High Frequency Traders could be treated as natural “insider traders” leading to significant price efficiency, as understood by the Efficient Market Hypothesis.

Die Ermittlung des beizulegenden Zeitwerts für Renditeliegenschaften nach IAS 40 ist, mangels verfügbarer Preisinformationen von aktiven Märkten, in hohem Masse ermessensbehaftet. Aus diesem Grund ist die Verlässlichkeit der Werte umstritten, was die Nützlichkeit der Informationen für die Abschlussadressaten in Frage stellt. In der vorliegenden Arbeit wird die Verlässlichkeit von Zeitwertschätzungen für Renditeliegenschaften mithilfe eines transaktionsbasierten Ex-post-Vergleichs empirisch bestimmt und untersucht. Für eine Stichprobe börsennotierter europäischer Immobilienunternehmen wird aufgezeigt, dass die Zeitwerte verkaufter Renditeliegenschaften von den tatsächlich realisierten Verkaufspreisen abweichen und signifikant unter den Verkaufspreisen liegen. Die darauf aufbauenden Ergebnisse einer multiplen Regressionsanalyse unter Berücksichtigung verschiedener potenzieller Determinanten deuten darauf hin, dass die Verlässlichkeit von Zeitwertschätzungen in Zusammenhang mit dem Ausmass der externen Informationsnachfrage sowie der Transparenz der Berichterstattung steht. Hinsichtlich der Auswirkungen am Kapitalmarkt lässt sich, mithilfe der gewählten Methodik, kein messbarer Einfluss der Verlässlichkeit von Zeitwertschätzungen auf die Marktkapitalisierung von Immobilienunternehmen feststellen. Weitere Analysen der gesammelten Transaktionsdaten bringen hervor, dass die Desinvestitionspolitik der untersuchten Firmen bestimmten Mustern folgt und unter anderem durch Wertschaffungsmöglichkeiten sowie erwartete Kapitalmarktreaktionen bestimmt wird., The fair value measurement for investment properties in accordance with IAS 40 involves a high degree of discretion due to the lack of available price information from active markets. Therefore, the reliability of the estimates is disputed, which calls into question the informational value for the users of financial statements. In this dissertation, the reliability of fair value estimates for investment properties is analysed empirically using a transaction-based ex-post-comparison. For a sample of listed European real estate companies, it is shown that the fair values of investment properties sold diverge from the realized selling prices and are significantly lower than the selling prices. The results of a subsequent multiple regression analysis, which takes into account various potential determinants, suggest that the reliability of fair value estimates is linked to the level of external information demand and the degree of reporting transparency. With respect to the effects on the capital market, no measurable influence of the reliability of fair value estimates on the market capitalisation of real estate companies can be found. Further analyses of the collected transactional data indicate that the divestment policy of the companies analysed follows certain patterns and is determined, among other things, by value creation opportunities and anticipated market reactions.

The degree of uncertainty associated with the value of a company plays a relevant role in valuation analysis. We propose an original and robust methodology for company market valuation, which replaces the traditional point estimate of the conventional Discounted Cash Flow model with a probability distribution of fair values that convey information about both the expected value of the company and its intrinsic uncertainty. Our methodology depends on two main ingredients: an econometric model for company revenues and a set of firm-specific balance sheet relations that are estimated using historical data. We explore the effectiveness and scope of our methodology through a series of statistical exercises on publicly traded U.S. companies. At the firm level, we show that the fair value distribution derived with our methodology constitutes a reliable predictor of the company’s future abnormal returns. At the market level, we show that a long-short valuation (LSV) factor, built using buy-sell recommendations based on the fair value distribution, contains information not accessible through the traditional market factors. The LSV factor significantly increases the explanatory and the predictive power of factor models estimated on portfolios and individual stock returns.

With ongoing controversy concerning fair value and historical cost accounting, existing accounting theory is focused on intra-firm decision making and is thus deficient in addressing the issue of maximizing social welfare. I propose models of historical cost and fair value accounting regimes which are embedded in models of monopoly and oligopoly. This allows for social welfare implications. I find that historical cost results in greater expected profits for both monopolists and oligopolists. However, if the market is elastic enough, a fair value regimes is welfare enhancing. Whereas, if the market is inelastic enough, historical cost is welfare enhancing.

Financial accounting, the use of historical cost of assets, is an important basic principle of historical cost, which is to become the dominant mode of accounting measurement. Background analyses, as well as the historical cost basis and fair value, result from the development of the theory of historical cost and fair value. Historical cost and fair value measurement model has its own advantages and problems. Based on this background, the paper applies B-theoretical numerical methods to differential equations pan function analysis for calculation of fair value accounting and conducts theoretical analysis of their stability and convergence. Finally, numerical examples with different methods of calculating an approximate solution are provided and a comparison of the various methods is done based on the results obtained. The results show fair value accounting better meets the needs of the target –decision-making availability, compared to historical cost or fair value, more in line with the requirements of Accounting Information Quality.

Purpose This paper aims to investigate the combined effect of two interventions, perspective taking and incentives, on auditors’ professional skepticism (hereafter skepticism) when auditing complex estimates. Specifically, this paper examines the different ways that perspective taking (management versus inspector) and incentives (absent versus reward versus penalty) combine to impact skepticism. Design/methodology/approach This paper uses an experiment with 177 experienced Big 4 auditors. The experiment used a 2 (management vs inspector perspective) × 3 (absent vs reward vs penalty incentives) between-subjects design. Findings In the absence of incentives, adopting a management perspective raises situational skepticism when measuring skepticism as appropriateness of management’s fair value estimate while adopting an inspector perspective raises situational skepticism when measuring skepticism as need for more evidence. The authors find some evidence that incentives complement perspective-taking by enhancing those aspects of skepticism for which perspective-taking performs poorly. When assessing management assumptions, auditors adopting an inspector perspective enhance their skepticism more substantially than those adopting a management perspective, and this enhancement is greater with rewards than with penalties. However, this study does not detect an interaction between incentive type and perspective-taking on auditor skepticism in relation to gathering additional evidence. Originality/value This paper extends the literature by shifting the focus from a single perspective to a comparison of two perspective-taking approaches and discusses how each of these approaches enhances different aspects of skepticism. This paper also illustrates the importance of the interplay between perspective-taking and incentives in enhancing auditor skepticism.

The aim of the study to investigate the effect and relationship between accounting of fair value according to the standard of (IFRS13) and the qualitative characteristics of accounting information. The fair value made a good contribution in the field of accounting thought because it faced the deficiency in the principle of historical cost, which was subjected to many criticisms. The researcher designed a questionnaire, where the number of the valid questionnaires was 135. The sample was distributed according to demographic variables (academic achievement, educational qualification, and years of experience). The researcher found through statistical analysis that there is a positive significant relation between the standard of fair value (IFRS13) and the qualitative characteristics of the accounting information. Also, there is an effect of IFRS13 on qualitative characteristics.

SUMMARY This article summarizes “The Impact of Benchmark Set Composition on Auditors' Level 3 Fair Value Judgments” by Bhattacharjee, Moreno, and Wright (2019), which examines how auditors' judgments of the reasonableness of a client's discount rate for a Level 3 investment are impacted by client-provided benchmarks. In two experiments, the authors find that audit seniors' and managers' judgments of a client-preferred discount rate for an investment are inappropriately influenced by the set of peer companies provided by the client as justification. Managers are less susceptible than seniors, likely due to highly developed knowledge structures. Results suggest that providing structured audit guidance to the seniors for conducting analyses somewhat reduces but does not eliminate this effect. The study's findings have implications for other auditing contexts using benchmarking such as goodwill impairment, inventory obsolescence, and valuation estimates and for audit firms when auditing complex estimates and determining staffing of audit engagements.

In their implementation of Basel III, U.S. bank regulators are again including changes in the fair value of available-for-sale (AFS) debt securities in Tier 1 capital, but only for the largest U.S. banks. This paper investigates a potential impact of expanding this regulation by examining bank investment decisions in the 1990's when changes in the fair value of AFS debt securities were included in regulatory capital for all banks. Using a matched sample difference-in differences research design, we find evidence that low-capitalized banks reduced their investments in more volatile asset classes (e.g., corporate bonds, non-agency MBS) and increased their investments in less volatile asset classes (e.g., treasuries and municipal bonds) after changes in fair value were included in regulatory capital. We also find that low-capitalized banks change their holdings of these asset classes in the opposite direction after regulators subsequently excluded changes in fair value from regulatory capital. These findings inform regulators worldwide regarding a possible consequence of Basel III. We also contribute to prior research by suggesting that changes in maturity and credit risk around the passage of SFAS 115 (Beatty 1995; Hodder, Kohlbeck, and McAnally 2002) were partially obtained by changing the composition of asset classes within banks' investment portfolios.

This study aims to identify a theoretical fair value of the Sharpe ratio. For this purpose, we propose a formula with a closed-form solution to estimate a fair, expected, or ex ante value for the Sharpe ratio by framing it in the option pricing model. We find that firm value, growth rate, return volatility, risk-free rate, and the maturity and face value of the debt contract are determinants of the Sharpe ratio. In particular, a firm’s investing and financing policies can affect the firm stock’s Sharpe ratios. Contrary to what might reasonably be expected, our results show that a firm with a higher equity value tends to have a lower Sharpe ratio value. The results show the potential and feasibility of integrating three fields in future research: performance evaluations, option pricing, and corporate finance.

This paper reviews the existing and emerging perspectives on fair value accounting (FVA) in the context of the stewardship function of financial reporting. This study draws on diverse research threads and theoretical notions to advance a comprehensive assessment of existing FVA research in the context of the trade-off between decision-usefulness and the stewardship objective. By conducting a narrative literature review, the authors identify two distinct domains of literature: FVA- a result of a conceptual shift in financial reporting; and FVA- an enhancement of decision-usefulness in general-purpose financial reporting. This study posits that FVA can be considered as an evolutionary, rather than revolutionary, development in financial reporting measurement which emerged from financialisation and globalisation of economies. It is further suggested that the ability of FVA to provide stewardship-relevant information may be reduced due to the emphasis it places on the provision of decision-useful information for investment purposes. Therefore, the authors call for a greater engagement between policy-setters and researchers when choosing conceptual underpinnings for financial measurement objectives. Key words: Fair value accounting, stewardship function, decision usefulness, IFRS 13.

The purpose of this study is to analyse and compare the accounting treatment of account receivable applied by PT Wahana Boga Nusantara with PSAK No. 50 and No. 55 revisied in 2014. This study uses descriptive data analysis techniques with a qualitative approach. The data collection method used is an interview with the Manager of the Financial Department and the Head of Account Receivable section on receivables accounting policy. The treatment of receivables accounting, non participant observations, and documentation with the documents used are financial position statements, profit and loss statements, receivables age lists, recapture of credit sales data during 2020. This study showed that the recognition of receivables has been by PSAK number 55 the revised the year 2014 because receivables are recognized when goods have been shipped and received by customers. Meanwhile, the measurement and presentation of receivables are not appropriate because they are not measured and presented at fair value.

Purpose Market efficiency leads to transparent and fair price discovery of commodity markets, thus enhancing the value chain for competitive benefit. The purpose of this paper is to investigate the market efficiency of Indian agricultural commodities at spot, futures and mandi markets apart from exploring price risk management in these markets. Design/methodology/approach This study uses Johansen co-integration, vector error correction model and granger causality for analyzing market efficiency of the nine most liquid agricultural commodities across three markets, namely, spot, futures and mandi. All these nine commodities are traded on National Commodity and Derivatives Exchange. Findings The statistical results indicate price discovery exists in the mandi market and spot market leading to futures prices. Mandi price returns are seen to negatively influence futures returns in the case of cotton seed, guar seed and spot returns in the case of jeera, coriander and chana. For castor seed, the three markets are seen to have no long run relationship. The results of Granger causality reveal short run relationship between all the three markets in the case of soybean seed and coriander. In these commodities, prices in all three markets are capable of predicting the prices in the other markets. For the case of cottonseed, Rape Mustard seed, jeera, guar seed, the results indicate unidirectional causality between the mandi markets and the other two markets. Research limitations/implications These results shall facilitate policymakers to explore intervention through integrated agri-platform (IAP) in price discovery and market efficiency. Practical implications The results of this study are useful in understanding the price discovery of mandi markets and its role in the spot and futures market. Agricultural commodities price discovery depends upon the integration of all these three markets. Introduction of IAP as described in the paper shall facilitate price risk management apart from improving the efficiency of price discovery. Originality/value To the best of the knowledge, this is the first study considering mandi, spot and futures prices in the price discovery process in India. In addition, this study found the role of mandi markets in serving the economic function of price discovery and price risk management. Hence, suggests for policy intervention for Indian agricultural commodities to manage price risk.

In the previous article, we analyzed the scope and features of the formation of fair value, which is entered into the Russian accounting of inventories and property, plant and equipment of non-budgetary sphere organizations (including healthcare organizations) thanks to the Federal Accounting Standards (FAS) 5/2019 “Inventories”, 6/2020 “Property, Plant and Equipment”, and 26/2020 “Capital Investments”. This article examines the valuation techniques and hierarchy of fair value of these assets. This study is all the more relevant since the fair value is entered into the Russian accounting of inventories and property, plant and equipment of non-budgetary organizations for the first time and it is still quite unusual for many domestic accountants. Analysis, synthesis, grouping method, comparison, analogy method, logical approach, and systemic approach were used as research methods. As a result of the research carried out, the article analyzes the fundamental issues in the field of valuation techniques and hierarchy of fair value of inventories and property, plant and equipment of non-budgetary sphere organizations (including healthcare organizations), identifies the most important problems in this area and presents recommendations for their solution.

This research was carried out with the purpose of analyzing how the financial information at fair value reported by companies in the Ecuadorian industrial sector was affected by the asymmetry of financial information generated during the COVID-19 pandemic. The methodology used was non-experimental research supported by descriptive, documentary and correlational research, through which it was found that the asymmetry of financial information is directly related to the risk rating and the accounts that are reported at fair value, which in turn It sometimes generates profit or loss in the entities, a statement based on the exploitation of the multivariate econometric model where negative and positive data were used. The exploitation of the model allowed us to know that if the risk rating of a company in the industrial sector improves from AA to AAA, it will significantly affect the income statement, which suggests that productivity standards should be improved. This research contributed to the area of ​​financial accounting with the help of econometrics. Researchers who wish to continue with this type of research could use the methodology used to collect new results and possible comparisons., Esta investigación se la realizó con el propósito de analizar cómo la información financiera a valor razonable reportada por las empresas del Sector industrial ecuatoriano se vio afectada por la asimetría de información financiera generada durante la pandemia por COVID-19. La metodología usada fue la investigación no experimental apoyada en investigaciones descriptivas, documentales y correlacionales, mediante la cual se encontró que la asimetría de información financiera está relacionada directamente con la calificación de riesgo y las cuentas que son reportadas a valor razonable, lo que a su vez genera pérdida o ganancia en las entidades, afirmación basada en la explotación del modelo econométrico multivariante donde se trabajó con datos negativos y positivos. La explotación del modelo permitió conocer que si la calificación del riesgo de una empresa del sector industrial mejora de AA a AAA afectará al estado de resultados de manera significativa, lo cual sugiere que se deberían mejorar los estándares de productividad. Esta investigación aportó al área decon ayuda de la econometría. Los investigadores que deseen continuar con este tipo de investigaciones podrían ayudarse de la metodología empleada para la recopilación de nuevos resultados y posibles comparaciones.

Cardao-Pito (2020) critically reviewed Donleavy’s (2019) article on the origins of the use of the word ‘fair’ in fair value accounting. This article is a rejoinder to the criticisms in that review.

Subject. This article analyzes the various types of value used in IFRS to assess assets and liabilities. Objectives. The article aims to conduct a comparative analysis of the types of value used in IFRS when assessing assets and liabilities, and identify the features of the use of fair value as a type of value, considering the use of certain levels of fair value and restrictions on their use. Methods. For the study, we used the systems analysis, comparative study method, information structuring, data grouping, deduction, and other methods of scientific research. Results. The article summarizes the advantages and disadvantages of each of the valuation methods described in the Conceptual Framework for Financial Reporting – IFRS. It systematizes the standards that use certain types of value, and analyzes the features of the use of fair value. The article also identifies factors that affect the ability to measure a higher level of fair value. Conclusions. Fair value is one of the most used valuation methods in international accounting practices. However, the use of fair value in estimating the value of reporting items is limited due to the complexity and high cost of its qualitative valuation. This makes companies use alternative valuation methods.

This study aims to determine the intrinsic value or fair value of shares and the position of share value in Agriculture sub-sector companies, whether Overvalued (expensive), undervalued (cheap), or fair-valued (fair) using the relative valuation method approach for the 2016 – 2019 observation period in Agriculture sub-sector companies. The population in this study were 70 samples of companies from various sub-sectors. Determination of the sample is with the technique of purose sampling. So that the sample obtained is three companies in the field of agriculture with the provision that they have the most liquid index. Calculation data is processed using Ms. Excel 2010. The calculation results using the Relative Valuation Method are that AALI and LSIP companies are recommended for sale because they are in an Overvalued position, while SIMP company shares are recommended to be purchased because they are in an undervalued position

We survey stakeholders in the financial reporting process to examine trust in fair value accounting. Although respondents demonstrate high confidence in financial statements, they believe that fair value accounting decreases trust in financial reporting and that preparing fair value numbers is costly but beneficial. They also strongly believe in the Conceptual Framework underlying standard setting. Using multivariate regression analyses, we find that perceiving fair value accounting as beneficial is positively associated with trust in it, consistent with the theory of reasoned action that people engage in behavior (e.g., trust) based on expected positive outcomes of that behavior. We find that this positive association increases with stronger beliefs in the Conceptual Framework. Our paper contributes to the fair value literature by providing general insights on trust in fair value accounting and a specific and novel assessment of how the perceived benefits of fair value accounting increase stakeholders' trust in it. JEL Classifications: D82; G34; M41.

Accounting for tangible fixed assets is a very important part of the accounting of public institutions, because these types of assets have a very large share and come in a variety of forms in public entities of different sizes and profiles, without which they would not could fulfil the missions for which they were created. The issue of accounting for these assets according to national regulations has been proposed to highlight it by comparison with international regulations represented by accounting standards for the public sector. In addition to the significant progress made since 2005 in aligning public accounting in the area of tangible fixed assets with that of the international standard (IPSAS – 17), we have found that there are provisions that have not been implemented for various reasons. Therefore, based on the research of the specialized literature, personal experiences and a survey conducted by us among professional accountants in the army, we have identified some possible solutions to continue the process of implementing this international standard, opinions and solutions that we present at the end of this article.

The Federal Accounting Standard (FAS) 5/2019 “Inventories” provides for a fairly broad application of fair value measurement of the inventories of non-budgetary sphere organizations (including healthcare organizations). An even more active use of fair value is suggested by FAS 6/2020 for the measurement of property, plant and equipment of the aforementioned organizations. The specified value is entered into the domestic accounting of the listed assets for the first time and is unusual for many Russian accountants. All this indicates the relevance of a detailed study of issues related to the fair value measurement of inventories and property, plant and equipment of the aforementioned organizations. In this article, the scope and features of the formation of this measurement are investigated. Other issues related to this measurement will be analyzed by us in the next article. The research methods were analysis and synthesis, grouping method, comparison, analogy method, logical approach, systemic approach. As a result of the research carried out, the article defines the scope of the fair value measurement of inventories and property, plant and equipment in the Russian accounting of organizations that are not budgetary sphere organizations, analyzes the features of the formation of such a measurement of these assets, identifies the most important problematic issues in this area and identifies ways to solve them.

The viability of medium chicken layer farming in the Gazipur district of Bangladesh is measured in this study. A total of 40 medium-scale layer farmers were selected for primary data collection through a face-to-face interview during the period of October to December 2018. Cost analysis revealed that the production of the chicken layer was profitable and the average total costs and average net return for 100 layers per year for medium farms were estimated at Tk.66,913 and Tk. 23,632 respectively. The average benefit-cost ratio was estimated at 1.35. The researchers also investigate that most of the farmers in the study area used almost the same types of antibiotics. Among the farms surveyed, 98% of the farms practiced proper vaccination, and the average antibiotics and vaccine costs for 100 layers in a year for all medium farms was estimated at Tk. 498 and Tk. 2,347 respectively. The estimated multiple linear regression model reveals that the key variables included in the model were individually or jointly responsible for variation in the profitability of chicken layer farming. In linear regression analysis, among the nine explanatory variables, most of the variables had a positive impact on chicken layer farming and the main influencing factor was the feed cost. In the study area, the major problem faced by the medium scale layer farmers were price fluctuation in different markets, lack of adequate storage facilities, inadequate capital, low market price, etc. To control the price fluctuation and ensure fair price to the farm owners, it is necessary to have government intervention in layer marketing. [J Bangladesh Agril Univ 2021; 19(3.000): 354-360]

Purpose: The purpose of this study is to investigate the relationship between assets measured at fair value and audit fees. For this purpose, this study was conducted on 243 companies traded in Borsa Istanbul.Approach: Multiple regression analysis was used in the study.Findings: As a result of the study, a significant and negative relationship was determined between the assets measured with level 2 and 3 inputs and audit fees. In addition, a significant and positive relationship was determined between company size, structural risk, big four audit firms and audit fees.Originality: Among the studies in the literature, there are empirical studies examining the relationship between the fair value measurement explanations and the audit fee, but there is no empirical study on this in Turkey., Amaç: Bu çalışmanın amacı, gerçeğe uygun değerle ölçülen varlıklar ile denetim ücreti arasındaki ilişkinin araştırılmasıdır. Bu amaçla Borsa İstanbul’da işlem gören 243 şirket üzerinde araştırma yapılmıştır. Yaklaşım: Çalışmada çoklu regresyon analizi kullanılmıştır.Bulgular: Çalışmanın sonucunda, seviye 2 ve 3 girdileriyle ölçülen varlıklar ile denetim ücreti arasında anlamlı ve negatif ilişki tespit edilmiştir. Bunun yanında şirket büyüklüğü, yapısal risk ve dört büyük denetim firması ile denetim ücreti arasında anlamlı ve pozitif ilişki tespit edilmiştir. Özgünlük: Literatürde yapılan çalışmalar içinde gerçeğe uygun değer ölçümüne ilişkin açıklamalar ile denetim ücreti arasındaki ilişkinin incelendiği ampirik çalışmalar bulunmaktadır ancak Türkiye’de buna yönelik bir ampirik çalışma bulunmamaktadır.

A análise de investimentos em ações baseados em proventos possui uma ampla gama de literatura, destacando-se as teorias da Irrelevância, da Relevância, da Preferência Tributária e da Agência. No caso brasileiro, a eficácia desta estratégia tem sido sustentada do ponto de vista legal (obrigatoriedade de pagamentos de proventos), metodológico (abordado por Décio Bazin, por exemplo) e prático (resultados obtidos por investidores como Luís Barsi Filho). Ainda no Brasil, o setor bancário destaca-se como um dos mais promissores para aplicação dos métodos de investimentos baseados em proventos. Desta forma, este artigo tem como objetivo realizar simulações de investimentos, para o período de 2014 a 2019, nas ações ordinárias do Banco do Brasil, Bradesco e Itaú-Unibanco. Pretende-se responder a seguinte pergunta: os retornos dos investimentos em ações do setor bancário, a partir de métodos baseados em proventos, superam os de outras formas de investimentos mais conservadores? Os resultados mostram que, ao longo prazo, as estratégias de investimentos baseadas nos proventos tendem a ser mais rentáveis do que as modalidades de renda fixa, podendo ainda ser potencializadas pela diversificação e adoção de reservas de oportunidades. Além disso, as simulações foram extrapoladas para o mês de abril de 2020, para avaliação dos efeitos do novo coronavírus às estratégias de investimentos. Este artigo contribui para propagação dos benefícios do mercado acionário à população brasileira, que, comparada com a de outros países, ainda investe pouco na bolsa de valores. Palavras-chave: Investimentos. Proventos. Bancos.

The study is intended to investigate the impact of applying fair value, as represented in two dimensions: the relevance of fair value accounting, and the obstacles confronting fair value accounting on investment decision making, for which the hypotheses of the study has been confirmed. The problem focusses on the impact of ambiguous standards, accounting disclosures, and the lack of credibility and reliability of investment decision making. The study is also intended to determine the positive effects of applying the fair value in terms of achieving quality in profits and enabling investment decision making to take correct decisions. The study attempts to investigate the role of fair value in determining the actual value of the entity depending on the market value of bank assets so as to improve future expectations and compare with other banks that depend on fair value. A questionnaire has been distributed to a sample of 70 individuals working at commercial banks in Karbala, Iraq. of accounts and auditors and investment decision-makers. we used multiple regression and the backward method in our statistical analysis. The study asserts the necessity to have legislation related to fair value and that consolidates the concepts of fair value and the ways in which this can be measured in banks through additional training courses.

Online shopping is one of the fastest-growing marketplaces in Bangladesh. But during the Covid 19, when other sectors are stable, only online shopping has gained a greater positive response. Thus, for online shopping, customers’ behavior is influenced by various factors including fare price, product quality, and durability, trust & security, etc. The study aims to identify the factors that influence the customers’ online shopping behavior during the Covid-19 in Bangladesh under the effect of control variables. The results indicate that of the eight dimensions, features and quality, fair price, performance and durability, trust and reliability, security, E-service quality, ease of use, and time are positively and significantly affect customers' online buying behavior during the Covid-19 in Bangladesh. Concerning the influence of these factors on customers, the study finds that features and quality, performance and durability, trust and reliability, e-service quality, ease of use and time factors influence the customers’ online buying behavior during the pandemic in Bangladesh. Online shopping companies must focus on these factors to get a higher response from people in Bangladesh.

This study aims to analyze the fair price of company shares in the LQ45 index with the dividend discount model (DDM) method during the 2014-2018 period. The analysis methodology using is a descriptive qualitative with data obtained from the Indonesia Stock Exchange with a case study approach, namely the 2014-2018 LQ45 Stock Price through LQ45 Stock Price Assessment analysis with the using Dividend Discounted Model (DDM) Method. The results of this study indicate that the fundamental analysis using the Dividend Discount Model (DDM) can be done after the intrinsic value of the stock is known then compared to its fair price so that it can be determined whether the stock is undervalued, fairvalued or overvalued . Penelitian ini bertujuan menganalisa harga wajar saham perusahaan yang berada pada indeks LQ45 dengan metode dividend discount model (DDM) selama periode 2014-2018.Metodologi penelitian yang digunakan adalah metode deskriptif kualitatif dengan data series dan cross section dengan pendekatan studi kasus (case study) yakni pada Harga Saham LQ45 Tahun 2014-2018 melalui analisis Penilaian Harga Saham LQ45 dengan Dividend Discounted Model (DDM). Hasil dari penelitian ini menunjukkan bahwa secara analisis fundamental dengan menggunakan metode Dividend Discount Model (DDM) dengan metode Constant Growth Model dapat dilakukan setelah nilai intrinsik saham sudah diketahui kemudian dibandingkan dengan harga wajarnya sehingga dapat ditentukan apakah saham berada dalam kondisi undervalued, fairvalued atau overvalued DOI: https://doi.org/10.26905/afr.v4i1.5960

Purpose The purpose of this paper is to discuss the possible money laundering threats in fair value accounting practices giving particular attention to the list of predicate offences under recommendations of Financial Action Task Force (FATF). Design/methodology/approach This paper discusses case studies related to global accounting scandals and link outcomes of those scandals with the list of predicate offences given in FATF recommendations to build propositions. Findings The analysis reveals that legal proceedings on major accounting scandals show that legal proceedings have been restricted owing to a lack of evidence because of the technicality of frauds. Often the authorities have failed to prove cases under the list of current predicate offences which can be linked to accounting malpractices, i.e. fraud. Therefore, policymakers are required to revisit the list of predicate offences and the feasibility of considering accounting malpractices as a predicate offence to strengthen the corporate governance practices in regulated institutions. The adoption of fair value accounting practices provides opportunities to managers to adopt earnings management practices under a fair value accounting regime to maintain stable performance. The fair value practice recognizes unrealized gains which are not based on transactions giving bank managers an opportunity to repeat the outcomes of the discussed accounting scandals. Therefore, it is essential to criminalize accounting malpractices to strengthen the corporate governance practices in the banking industry and prevent possible accounting scandals. Research limitations/implications This study was designed to discuss the implications of fair value accounting practices on possible opportunities of money laundering. This paper provides only a viewpoint based on the analysis. Therefore, an empirical analysis is required to establish the authors’ views in a fair value accounting regime. Originality/value This paper is an original work done by the authors which discuss the implications of fair value accounting practices on possible money laundering. The views are original ideas of the authors in this context.

Purpose The purpose of this study is to evaluate the impact of ASU 2016–01 on the predictive value, the confirmatory value and the value relevance of earnings. One of the key provisions of ASU 2016–01 is the requirement that all changes in unrealized gains and losses on all equity securities are recognized in income instead of other comprehensive income (OCI) as under prior guidance (SFAS 115). Because many companies in the insurance industry are large holders of equity securities, the sample for this study consists of firms from the insurance industry. Design/methodology/approach The author compares the change in earnings volatility and analysts’ forecast error for the periods before and after adoption of ASU 2016–01, and the relationship between the percentages of assets invested in equity securities for both earnings volatility and analysts’ forecast error. Further, the author tests the price reaction at the time of the release of earnings using an event study. The author also tests the value reliance of earnings measured by the correlation of earnings and stock prices, as well as the change in earnings and stock returns. The association between investment gain/loss components of earnings, and OCI, with stock prices and returns is tested for value relevance. Findings The findings of this study show that earnings volatility and analysts’ forecast errors increased in the period after adopting ASU 2016–01 and an initial overreaction to earnings releases. Further, the investment gain/loss components of earnings and OCI are not value-relevant in this study and including unrealized gains/losses on equity securities in income decreased value relevance of earnings in the post-adoption period, particularly for firms with large equity investment portfolios. Research limitations/implications This study is limited to one industry and only represents the impact of ASU 2016–01 on that industry. Thus, there are opportunities to extend the research to other industries. Furthermore, the time-period of study since adopting ASU 2016–01 is limited to only two years and with the passage of time, a greater sample of post-ASU 2016–01 will be available for testing. Practical implications Standard setters considering recognizing fair value changes on all investment securities in income should consider the findings of this study. Further, industry participants affected by ASU 2016–01 should consider improving explanation of earnings to mitigate the initial misunderstanding of earning announcements found in this study. Originality/value To the best of the author’s knowledge, this is the first study on the effects of ASU 2016–01 on volatility of earnings, earnings forecast errors, market reactions to earnings releases and the value relevance of earnings. This paper fills a gap in prior research by studying the effects of fair value on reported earnings, which is limited in prior research. This study contributes to the growing field of research on fair value accounting.

This study responds to calls for additional research on how accounting prescriptions are being operationalised with a specific focus on fair value accounting by individual practitioners. Detailed i...