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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.

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.

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.

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.

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.

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]

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.

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...

O CPC 29 proporcionou uma evolução técnico conceitual para a contabilidade rural e agrícola. A norma trouxe o conceito de mensuração dos ativos biológicos a valor justo menos despesa de venda, no reconhecimento inicial e nos finais de cada período. O objeto deste estudo foi apresentar os conceitos de ativos biológicos e sua evolução conceitual até a revisão nº. 08 de 2015, evidenciando como a modificação refletiu nas demonstrações financeiras, e consequentemente nos indicadores financeiros, do segmento sucroenergético do Estado de São Paulo. Constitui-se em uma pesquisa descritiva, quantitativa e bibliográfica baseado em demonstrações publicadas pelas companhias do setor sucroenergético entre os anos 2015 e 2016. Os resultados evidenciam claramente os efeitos da evolução conceitual da norma, com ênfase na apresentação fidedigna dos indicadores e das demonstrações financeiras, que ao final de cada período apresentou uma menor oscilação nos resultados, em sintonia com as práticas internacionais de contabilidade.

This paper explains the trade-offs between the relevance and faithful representation of accounting information analyzed in the contexts of the cash-basis, accrual-basis, and fair value accounting methods used to prepare financial statements for Generally Accepted Accounting Principles (GAAP) and tax reporting. Discussion of the role of the relevance and faithful representation of accounting information is generally separate from any discussion of the trade-offs between cash-basis, accrual-basis, and fair value accounting methods, and the different needs and priorities of the users of GAAP and tax reporting information. The study contributes to the literature by suggesting how the importance of relevance and faithful representation differs between GAAP reporting and tax reporting, and how the allowable accounting methods for GAAP and tax reporting align with the differing emphasis on relevance and faithful representation. We review the reporting requirements established by regulators in light of these trade-offs and discuss how the needs of external users of the reporting information shape the allowable accounting methods for GAAP and tax reporting. Key words: Relevance, faithful representation, cash-basis, accrual-basis, fair value, GAAP, tax reporting.

There is an ongoing policy debate over whether the adoption of IFRS should be mandatory. All Taiwanese listed companies had to adopt IFRS from 2013, but they could choose to adopt earlier in 2012. Surprisingly, given cross-national comparisons, not one Taiwanese company adopted early. This is an extreme example of policy "reluctance." We explore this unique setting, by analyzing a leading reluctant Taiwanese company, Clevo. It was widely known as a potential early adopter but withdrew at the last minute. This paper illustrates how a firm which perceived net benefits would be incentivized to adopt IFRS early, but then how uncertainties in regulations could stall such intentions. Through discussing how the accounting regulators responded to this firm's actions (and vice versa), this paper helps us to understand better the prerequisites for effective policy design and corporate decision-making in the context of IFRS adoption and implementation. This paper, using a qualitative research method, will also add to exiting IFRS literature which mainly focuses on quantitative analysis.

Purpose The current paper aims to understand whether fair value accounting (FVA) affects analysts’ loan approval decisions and default risk judgments. Design/methodology/approach This study focusses on three issues: unrealized gain or loss resulting from FV measurement recognized in other comprehensive income (OCI), recognition of assets at FV or historical cost and the disclosure or non-disclosure of the FV of collateral assets. It uses an experiment carried out with a sample of 29 CFA analysts. Findings The results show that all three issues have a significant effect on analysts’ judgment and decision-making in processing FV estimates. Originality/value The paper extends knowledge on how financial analysts perceive FV estimates and disclosure and may help the accounting standard boards assess the challenges facing analysts when they apply professional judgments in interpreting FV measurements and disclosures. Moreover, it offers fresh views to the debate on the decision usefulness of FVA, particularly relevant in the post-implementation review of IFRS 13.

This study examines whether the fair value accounting and its complexity have influence on the financial statement comparability. Using quarterly bank holding company data from 2008 to 2015, I find that the proportion of fair value asset is negatively associated with financial statement comparability and that this negative relation is more pronounced for the least verifiable (level 3) fair value estimates. Under the three level hierarchy of SFAS 157, financial statement of a bank become less comparable with other banks as complexity of their fair value estimates increases. In addition, I find that the negative relation between financial statement comparability and the least verifiable fair-value assets is more evident for the banks with high capital adequacy ratio. Overall, these results indicate that fair value complexity has negative influence on comparability and that this effect changes with the level of bank regulatory capital.

Objetivo: O objetivo é verificar o impacto do uso da mensuração a valor justo sobre os honorários de auditoria, diferenciando-se inclusive o período pré e pós adoção do CPC 46. Metodologia: A pesquisa apresentada é quantitativa, sendo que para o teste das hipóteses levantadas foi utilizada a técnica de regressão múltipla, com dados disponíveis das empresas listadas na B3 referentes ao período entre 2010 e 2016. Resultados: As evidências indicam que a complexidade e subjetividade do valor justo é reconhecida pelas empresas de auditoria, ou seja, as firmas de auditoria consideram que a mensuração a valor justo implica mais esforços e que os riscos de auditoria associados se elevam, levando as firmas à cobrança de um prêmio de risco pela prestação do serviço. Entretanto, não foi possível confirmar que os honorários dos auditores aumentaram após a adoção da IFRS13 (CPC 46). Contribuições do estudo: Teóricas/metodológicas - o estudo contribui para a compreensão sobre os impactos da adoção de normas internacionais de contabilidade, neste caso específico, sobre honorários de auditoria. Sociais/para gestão - dada a evidência de que há maior custo de auditoria associado à maior complexidade das informações em ambiente de valor justo, as empresas podem desenvolver mecanismos de minimização de incerteza associada às informações a serem auditadas.

FASB and IASB have differences in setting the accounting standard for fixed asset. The FASB does not allow firms to restore the asset value that has been written down, while the IASB allow companies to recover the asset values that has been written down. These differences have distinct implication to depict the COVID-19 pandemic phenomenon and prevent earnings management that will affect the qualitative characteristics of the faithful representation. Therefore, this study aims to analyze the fixed asset accounting standards of U.S. GAAP or IFRS which is more optimal to improve the faithful representation in the case of the COVID-19 pandemic and earnings management. Based on an analysis of the theory and literature review, this study conclude that the fixed assets accounting standard of IFRS is more optimal to represent the COVID-19 pandemic faithfully than that of U.S. GAAP. This is because IFRS allows for recovery of impairment losses. In addition, the fixed asset accounting standard of U.S. GAAP is more optimal than that of IFRS for preventing earnings management so as to improve the quality of faithful representation of the fixed asset value. This is because the fair value measurement for fixed assets involves estimation and subjectivity of the asset appraiser enhancing the possibility of earnings management.

The article discusses a method for assessing the assets of an organization at fair value. The concept of fair value is given. The prospects of its application for the valuation of assets and liabilities in Russian accounting practice are examined. The author proves the necessi-ty of taking a number of measures on the part of the state and firms to approve the fair value standard in the Russian accounting system. For some assets and liabilities, observable market transactions or market information may exist. For other assets and liabilities, observable market transactions or market information may not be available. However, the objective of measuring fair value in both cases is the same - to determine the price at which an orderly transaction would take place to sell an asset or transfer a liability between market participants at the measurement date under current market conditions.

This study aimed to identify the most important challenges facing auditors when measuring fair value FVMs from three axes, namely identifying which challenges are most influencing auditors to direct attention towards them, and revealing the extent to which the inherent auditing risks are affected by fair value evaluation estimates. The third axis of this study raises discussions about the reliability of audit evidence relating to fair value and assures that disclosed and recognized fair values ​​are guiding values. The field study was applied to a sample of external auditors in the West Bank, where the researcher used the descriptive analytical approach in the field side and used the inductive approach to test the study hypotheses. The study found a set of results; the most important challenge facing the auditor in auditing fair value estimates is the lack of access to recent amendments to the international auditing standards for fair value accounting estimates. The study results also confirmed the impact of auditing risks with fair value estimates and measuring them at higher rates in many cases, including (the absence of active markets, the presence of significant misstatements, and the difference in the basis for measuring fair value).

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

The move of the Financial Accounting Standards Board to expand the use of fair value instruments results in an increase in unverifiable assets and liabilities, which do not have actively traded market prices. Prior research suggests that managers may use discretion in estimating fair values of such assets and liabilities for their self-serving interests, leading to more agency conflicts. We examine the association between a firm’s corporate social responsibility (CSR) performance and the unverifiable net assets ratio, used to capture the level of unverifiable assets and liabilities. We find a significant negative relation between CSR and the unverifiable net assets ratio, suggesting that socially responsible firms use a low level of unverifiable assets and liabilities.

This study aims to provide an overview of the differences in the accounting treatment of biological assets before and after the implementation of PSAK 69, namely based on PSAK 16 and PSAK 69. This study analyzed the implementation of PSAK 69 in agricultural companies listed on the Indonesia Stock Exchange in 2017-2018. The data analysis technique used in this study is an interactive model analysis technique namely to know the difference in accounting treatment for biological assets based on PSAK 16 and PSAK 69 in 15 agricultural companies. The are three aspects in compared; first on the recognition aspect, based on PSAK 16, agricultural companies recognize plantation crops as assets and do not recognize agricultural products as biological assets. Meanwhile, PSAK 69 measures the biological assets of agricultural companies using fair value less costs to sell and biological assets are not depreciated. Based on PSAK 16, agricultural companies disclose matters related to depreciation.Meanwhile, based on PSAK 69, agricultural companies disclose descriptions of biological asset groups and the value of gain/ losses arising from the use of fair value. Based on the results of the analysis 3 of 15 agricultural companies listed on the Indonesia Stock Exchange in the period 2018 has implemented PSAK 69 as much as 100%, the rest apply PSAK 69 as much as 50% to 94%.

Agricultural activity is a type of operational activity carried out by an entity to manage biological transformation and harvested biological assets to be sold or converted into agricultural products. In biological transformation, measurement is needed, which shows the value of a biological asset in fair value with the entity's economic benefits. PSAK 69 concerning agriculture has been approved by the Indonesian Financial Accounting Standards Board (DSAK IAI), and its implementation becomes effective as of 1 January 2018. PSAK 69 Agriculture regulates the accounting treatment and disclosures related to agricultural activities. This research was conducted to determine the accounting treatment of agricultural activities and the implementation of PSAK 69 to PT IJ, which is one of the entities whose business activities are engaged in the exploitation of industrial plantations. This study used qualitative research methods with interpretive paradigms and ethnomethodology approaches. Data analysis techniques were used at the time of data collection in observations, interviews with informants, and collecting documents in financial statements supporting data research. Based on the research conducted, the discussion results signify that the accounting treatment of agricultural activities at PT IJ in recognition, measurement, recording, presentation, and disclosure is in accordance with PSAK 69 concerning agriculture.

The Kazakhstani economy has a significant emission potential. The study reveals the issues of the restraining influence on the development of Kazakhstani companies' emission activity. Among them are the role of bank lending in financing the national economy; government discouragement of economic development; weak efficiency of administrative and tax preferences for issuers. An important factor is the doubt of Kazakhstani companies on their capital fair evaluation in the market. In particular, the study noted that over the past five years, there has been a stable trend towards a decrease in bank lending as for large, the same is for small and medium-sized businesses. Basing on the continuing low number of new registrations of prospectuses for the issue of shares, there arises an issue of finding ways to meet the needs of business entities in financing. The findings from the analysis of sources of financing the State programs in the Republic of Kazakhstan showed the amount of possible funding from the stock market instruments. The study of data over the past few years made it possible to conclude that the methods and ways of using funds allocated under these state programs actually discourage business and local governments to use the emission potential that Kazakhstani market participants currently have. Administrative and tax preferences that operate in Kazakhstan for domestic participants in the stock market are either mainly aimed at investors or rather incomprehensible and imperceptible for potential issuers. Uncertainty in achieving the planned funding levels and in a fair assessment of the company's capital cost, basing on the above factors identified as a result of the study, is the main constraining reason for the low emission activity of Kazakhstani stock market participants.

The entities that operate in the agricultural activity, during the management must make decisions, which depend a lot on the information that is available in the opportune moment. Timely information and reliable accounting records are essential in this process. For the measurement of biological assets at fair value, there must be an active market. The fair value is based on the current location and condition of the asset and will therefore result from its price in the relevant market. There may, however, be advantages and disadvantages in the use of fair value in the measurement of a biological asset, a topic that will develop in this article.

The Targeted Public Distribution System (TPDS), a major food safety net program in India, aims at alleviating food and nutrition insecurity among the undernourished population through supply of grains at subsidised rates by Filling up the Nutrition Gap (FNG). The TPDS, being the major food safety net program, is pivotal in implementation of National Food Security Act that makes right to food a legal entitlement. TPDS has undergone several reforms, the latest being the digitalisation of the system. Digitalisation was adopted by 29 states to plug the gaps and improve the impact of TPDS. The present study was undertaken to assess the functioning of the modified TPDS and Food and Nutrition Security in Urban Population of Vadodara, Gujarat, India. The major findings from the study indicate that the presence of Fair Price Shops and their regular functioning ensured food availability however, misclassification of the target households thwarted the accessibility to food grains at subsidised rates to the deserving households. TPDS was instrumental in promoting food and nutrition security in the households utilising the services.

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

The valuation of insurance liabilities has traditionally been dealt with by actuaries, who closely monitored underlying illiquid features, assumed a long-term perspective, and exercised their own subjective, expert judgment. However, the new EU regulatory regime of Solvency II (S2) has come to require market-consistent valuation supplemented by a risk-sensitive capital. This is considered an unwanted shift towards short-termism that is misaligned with the industry’s long term and countercyclical character. The new principles place the ‘technicalising’ logic of financial economics over ‘contextualising’ actuarial know-how. Following existing analytics of valuation from the ethnography of reinsurance markets and the social studies of finance, such requirements appear either as an alarming attack against the actuarial component of traditional valuation practice, or else as a preserver of it, through a process of enfolding at the heart of the financialisation project. This article holds that the case of S2 challenges both these analytics of valuation. S2’s financialisation project, precisely by attempting to construct itself, deconstructs itself into an actuarial project, in a recurring, aporetic process. In this respect, fair (or otherwise) valuation remains always undecidable, inconclusive, and thus responsible.

Property, plant and equipment is present in any entity, regardless if it is a private or a state entity, their main objective being to provide benefits to the company. The right classification, depending on the company’s line of business and the purpose for their use, is very important because it determines the applicable accounting treatment. The efficiency regarding the way these assets are recognized brings excess value to the entity, with a direct impact on the financial statements. The accountant’s professional judgement used in choosing the accounting policies in order to ensure that those are the most relevant and that the accounting for is correct involves exigency and rigorous research, for a correct final result and a transparent image of the firm. Alternation of the accounting policies, as well as the alternation of the input values of property, plant and equipment can significantly influence the values recorded in the financial statements, as well as the financial position and performance. The aim of this article is to highlight the main aspects related to the recognition and evaluation of property, plant and equipment according to the moment they enter in the entity. Therefore, at the end of this research we will know the applicable accounting treatments as well as the main differences between the IAS 16 Property, Plant and Equipment and the Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented.

Biological assets are assets of living things in the form of animals and plants. There have been various debates regarding the measurement of biological assets. The debate is related to the use of fair value and historical value in measuring biological assets. Historical value is considered less relevant because it does not reflect present value, while fair value is not considered as expected because it causes fluctuations in earnings and retains manipulation. This study aims to analyze the effect of fair value and historical value measurements on biological assets on income smoothing and the tendency of earnings manipulation in companies that use fair value. The results of different tests show that there is not enough evidence to state that companies that use fair value tend to have higher income smoothing than companies that use historical value. Based on the results of this study, it is suggested that investors should not only focus on company profits but also use other considerations such as future economic conditions, management performance, and government regulations.

The article examines the main changes in the accounting and tax accounting of fixed assets that have occurred in accordance with the adoption of the new Federal standard FSBU 6/2020 «Fixed Assets». The author compared the current PBU 6/01 «Accounting for fixed assets» with the mandatory for use from the reporting for 2022 FSBU 6/2020 «Fixed assets». The article contains comparative characteristics of regulatory documents and explanations on them. The new regulatory document introduces changes not only to such concepts as cost, depreciation, useful life, but also gives a new, significantly distinguis hable, concept of fixed assets, requirements for the recognition of assets as items of fixed assets. The comparisons made in the article can be useful for practical application. It is noted that the accounting of fixed assets has become closer to International financial reporting standards. For example, such a concept as «fair value» is introduced by FSBU 6/2020 in accordance with International Financial Reporting Standard (IFRS) 13 «Fair Value Measurement». The author concluded that the practical application of all the innovations in the accounting of fixed assets will facilitate the formation of financial statements in accordance with IFRS.

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

This study examines the current status of accounting standards among Jordanian firms. In particular, it examines the adoption level of IAS/IFRS. In addition, it examines the implementation process in terms of difficulties and challenges. Further, the study tests empirically the effect of international institutional pressures, local legal enforcement bodies and accounting education level on accounting standards adoption level. The results of the study are based on the descriptive and multiple regression analysis technique. Based on 62 usable responses, the study reveals that the adoption level of IAS/IFRS among Jordanian firms is moderate. For example, IFRS 7 (Financial Instruments: Disclosure) is the most adopted standard. This is followed by IAS 32 (Financial Instruments: Presentation) and IFRS 15 (Revenue from Contracts with Customers) respectively, while IFRS 2 (Share-based Payment) is the least adopted standard. In general, the study reveals that the implementation process of some standards is easy such as IFRS 7 (Financial Instruments: Disclosure), while others such as IAS 36 (Impairment of Assets) and IFRS 13 (Fair Value Measurement) need additional efforts to properly implement. In addition, several challenges were detected, which could prevent the proper implementation of some accounting standards such as the shortage in the governmental and IT supports. Further, the study shows that international institutional pressure and local legal enforcement bodies have a positive and significant relationship with the adoption level of accounting standards, while the effect of accounting education level is insignificant. JACPA should coordinate and collaborate with IASB and the government to offer all the necessary financial, technical and legal support for Jordanian firms to fully adopt and apply accounting standards. Several recommendations were offered for future research to enrich this vital topic in Jordan and other developing countries.

The research provides an attempt to identify the effects of technical and professional developments on audit risks, important of these developments are cloud computing, blockchain, electronic commerce, fair value and corporate governance. Considering that these developments represent the modern environment for auditing in general and auditing risks in particular. Therefore, the nature of these developments and their relationship to auditing and their impact on audit risks have been clarified, leading to the determination of the implications of these developments on audit risks and the requirements to keep up with developments (technical and professional) in the field of audit risk assessment.

This paper studies the relevance of Level 3 fair value disclosures in financial statements for equity analysts. The research also examines the impact that implementation of IFRS 13 Fair Value measurement had on the relevance of disclosures and disclosure practice. Semi-structured interviews with equity analysts and fair value disclosures of three listed real estate companies are used to analyse relevance of fair value disclosures. Equity analysts focus on cash flow and do not incorporate Level 3 fair values as an input in their valuation. These results indicate that Level 3 fair value measurements or fair value disclosures have little relevance or information value for analysts. However, the fair value disclosures appear to have to some extent confirmative value as they provide the analysts with comfort over their own fair valuation measurements and verify the credibility of management. The additional disclosure requirements implemented with IFRS 13 have scant relevance for equity analysts. The results provide evidence that standard setters, auditors and preparers of financial statements with significant Level 3 estimates should focus on predictive and forward-looking disclosures to evaluate future cash flows. Detailed disclosures about management valuation process and sensitivity analysis have limited relevance for the analysts. This study links together the analysts and disclosures literature and provides insights into relevance of fair value disclosures and understanding how analysts process and use fair value disclosures.

Purpose The purpose of this study is to examine the relation between managerial ability and fair value inputs (measured as fair value intensity) for nonfinancial firms. Design/methodology/approach This study uses regression analysis to investigate the impact of managerial ability on the level of fair value inputs. Findings This study finds significant and positive relations between managerial ability and use of Level 1 and Level 2 fair value inputs. On the other hand, this study finds an insignificant relation between managerial ability and Level 3 inputs. Originality/value The findings contribute to two research streams. To the best of the author’s knowledge, this is perhaps the first study that directly examines the link between managerial ability and fair value inputs.

We examine the relation between accounting reporting complexity and analysts’ performance and whether analysts’ qualifications, experience, and expertise in specific financial domains help them more effectively process complex information. We document an inverse relation between complexity and analysts’ performance. Further, we show that analysts’ firm-specific experience, industry focus, and CFA certification alleviate some of the adverse effects of complexity, whereas analysts’ general experience does not appear to do so. Using an XBRL-based approach, we also develop new measures of analysts’ expertise and find that expertise in the areas of fair value, derivatives and pension are more valuable than other analyst characteristics in attenuating the negative effects of complexity arising from transactions and events in these areas. Overall, this study underscores the importance of analyst characteristics and the need to simplify the complex disclosures in the notes to the financial statements.

PurposeThe purpose of this article is to study how fair values in financial reports are audited.Design/methodology/approachThe study is a qualitative case study based on in-depth interviews.FindingsOne important finding is that auditors anchor in the figure presented by the company, and despite the auditing efforts, there is a substantial risk of management bias in the fair values reported. There is a risk for confirmation bias.Research limitations/implicationsRelatively, few respondents were employed in this study, but their background and competence lead to the assessment that the study provides a representative picture of what is being investigated.Practical implicationsAuditors may need to develop ways of performing auditing of fair values to reduce the risks identified in this study.Social implicationsThis study presents a perspective of the auditing process enabling an evaluation of the quality of fair value estimates regarding investment properties in the financial reports. This study also provides users of financial reports as investors, bankers and other institutions with an enhanced understanding of reported estimates of fair (market) values.Originality/valueVery few studies have investigated how auditors evaluate fair values of investment properties. This study contributes by giving users of financial reports an enhanced understanding of the quality of reported estimates of fair (market) values.

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.

PurposeThe objective of this research is to explore the challenges being encountered when applying and implementing fair value accounting requirements, focusing specifically on the determination of fair value per International Financial Reporting Standards (IFRS) 13: Fair value measurement (IFRS 13) in the South African capital market.Design/methodology/approachData are collected from 20 detailed interviews, primarily with preparers and interpretively analysed to identify how individuals internalise the requirements of IFRS 13 and the challenges associated with its application. The researchers focus specifically on South Africa because of its status as a developing economy and, at the same time, its extensive experience in applying IFRS.FindingsSouth African preparers appear reluctant to change from a conventional cost-based measurement approach to one grounded in fair value. Primary concerns include the perceived usefulness of fair value accounting and its conceptual appropriateness, given its perceived de-emphasis of the traditional stewardship role of financial reporting. Related challenges to the application of IFRS 13 include concerns about the cost of determining fair value; the inherent subjectivity of fair value measures and the practical difficulty of calculating fair values when markets are not efficient or where business environments are complex and dynamic where Level 1 inputs are not widely available for all assets and liabilities. These challenges encourage preparers to choose accounting policies, which minimise the use of fair value or apply the provisions of IFRS 13 legalistically.Research limitations/implicationsData are collected from a group of respondents from a single developing economy. Additional research on the application of IFRS 13 in other developing markets will be required to conclude on the relevance of economic, cultural and social factors for the understanding and implementation of new accounting standards by practitioners.Practical implicationsStandard setters and regulators cannot assume that new accounting standards will be interpreted and applied as intended. Even when compliance with IFRS is mandatory, preparers have considerable discretion when it comes to operationalising accounting prescriptions. Unless the challenges raised by preparers are addressed, misapplication of IFRS is likely to continue.Originality/valueThe research makes an important empirical and practical contribution by providing primary evidence on the operationalisation of IFRS 13 in a novel setting. It complements earlier research which has focused primarily on the conceptual/theoretical dimension and on American and European perspectives.

This structured literature review of 48 archival-based studies investigates the influence of fair value measurements on earnings quality and stresses the moderating impact of corporate governance. We focus on accounting-based earnings quality measures that have several advantages for investigating agency-related earnings management behavior compared to market-based measures (e.g. value relevance studies). Fair value measurements are not restricted to specific industries, periods, circumstances, or items in our sample. Based on the applied earnings quality measure, the reviewed articles are structured into five categories: (1) earnings persistence and predictive ability, (2) discretionary accruals, (3) target beating and properties of analysts’ forecasts, (4) earnings variability, and (5) other earnings quality measures. We indicate three key findings: first, fair value measurements show mixed earnings quality; second, lower-level fair value measurements decrease earnings quality; and third, corporate governance measures enhance earnings quality. After that, we deduce six research questions for future research. We show possible extensions to previous research designs in methodology and settings. Future research should also focus on corporate governance variables to a greater extent, especially compensation and board structures. Thereby, we suggest extending the neoclassical view with behavioral aspects. This structured literature review of 48 archival-based studies investigates the influence of fair value measurements on earnings quality and stresses the moderating impact of corporate governance. We focus on accounting-based earnings quality measures that have several advantages for investigating agency-related earnings management behavior compared to market-based measures (e.g. value relevance studies). Fair value measurements are not restricted to specific industries, periods, circumstances, or items in our sample. Based on the applied earnings quality measure, the reviewed articles are structured into five categories: 1) earnings persistence and predictive ability, 2) discretionary accruals, 3) target beating and properties of analysts’ forecasts, 4) earnings variability, and 5) other earnings quality measures. We indicate three key findings: First, fair value measurements show mixed earnings quality; second, lower-level fair value measurements decrease earnings quality; and third, corporate governance measures enhance earnings quality. After that, we deduce 6 research questions for future research. We show possible extensions to previous research designs in methodology and settings. Future research should also focus on corporate governance variables to a greater extent, especially compensation and board structures. Thereby, we suggest extending the neoclassical view with behavioral aspects.

Fair value’s advantages, disadvantages and ideology have been debated thoroughly by academics and practitioners for decades. The few implementation papers which do exist are primarily concerned wit...