Historical Cost

The paper focuses on the possible ways of biological assets measurement in financial reporting of SMEs. The entity uses the fair value model for those biological assets for which fair value is readily determinable, and cost model is employed for all other biological assets. The substance of all kinds of biological assets differs significantly, especially bearer plants and living animals. The authors evaluated application over mentioned methods for representatives of both kinds of biological assets (apple orchard and dairy cows). According to the study, historical cost is suitable for bearer plants, the fair value measurement is suitable for living animals.

Since the 2008 global economical and financial crisis, the fair value measurement has acquired a controversial position both within the accounting regulatory committees and the accounting theory. The literature generally examines two opposite central paradigms of evaluation, namely the Fair Value Accounting (FVA) and the Historical Cost Accounting (HCA). The paper, after a literature review through both these opposite sides, suggests a theoretical framework, using the basic concept of “accounting system”, for the choice between the opposite paradigms, considered noteworthy in times of crisis as it should allow to conceptualize a ‘mixed system’, combining FVA and HCA in different ways according to the different contexts and entities reported by the financial statements.

Enhanced transparency and consistency in financial reporting have led to better-informed decision-making by investors and other stakeholders. The current study emphasized the impact of the adoption of converged IFRS/ Ind AS on the financial position of the company in India. The study has used the cash flow position ratios (i.e., cash flow to sales ratios, cash flow assets ratios, and operating cash flow to profit ratios) and equity shareholding positions (i.e., adjusted earnings per share and adjusted cash earnings per share) of 12 NSE-listed companies along with the pre-period of the adoption from 2011-12 to 2014-15 and the post-period of the adoption from 2016-17 to 2017-18, which are collected from the annual report of the companies. By employing a paired t-test, the study found that the adoption of converged IFRS has no impact on the cash flow positions and equity shareholding positions.

Keywords: IFRS, Cash Flow Positions, Equity Shareholding, Financial Reporting, Transparency, Convergence

In the second half of the XX century was the most famous scholar and professor of Accounting at the University of Palermo and his school lasts there today through his disciples of first and second generation. This paper has the aim of outlining his work and, if it is still alive, his heritage for Business Economics and Accounting ( 1 ) of nowadays. To do so, we have to place before some bio-

Konsep: Menggunakan data biaya dari proyek serupa yang telah selesai di masa lalu sebagai acuan untuk memperkirakan biaya proyek baru. Keterangan: Seperti membandingkan apel dengan apel. Jika proyek baru mirip dengan proyek lama, kita bisa menggunakan data biaya proyek lama sebagai perkiraan awal. 2. Bottom-up Estimating (Estimasi Bawah-Atas): Konsep: Memecah proyek menjadi bagian-bagian kecil yang lebih mudah diestimasi biayanya, lalu menjumlahkan estimasi biaya dari semua bagian tersebut untuk mendapatkan total biaya proyek. Keterangan: Mirip dengan menyusun puzzle. Kita estimasi biaya tiap kepingan puzzle, lalu menjumlahkannya untuk mendapatkan total biaya gambar puzzle. 3. Parametric Estimating (Estimasi Parametrik): Konsep: Menggunakan model matematika atau persamaan statistik untuk menghubungkan biaya proyek dengan variabel-variabel proyek (parameter). Keterangan: Seperti menggunakan rumus. Jika kita tahu parameter proyek (misalnya luas bangunan), kita bisa menggunakan rumus untuk menghitung estimasi biaya. 4. Three-Point Estimates (Estimasi Tiga Titik): Konsep: Menggunakan tiga jenis estimasi (optimis, realistis, pesimis) untuk memperkirakan biaya proyek, lalu menghitung rata-rata tertimbang dari ketiga estimasi tersebut. Keterangan: Lebih akurat karena mempertimbangkan berbagai kemungkinan. Kita punya perkiraan terbaik, terburuk, dan perkiraan yang paling mungkin terjadi. 2. Analisis biaya menjadi sulit karena adanya dampak inflasi tak terduga, perubahan tak terpredikisi dari teknologi, dan pasar input output yang bersifat dinamis. Historical vs Current Cost 1. Penyimpangan antara biaya-biaya ekonomi dengan valuasi akuntansi adalah hal yang biasa. 2. Analisis yang akurat melibatkan pertimbangan yang hati-hati untuk semua alternatif keputusan yang relevan. Biaya dapat didefinisikan dalam beberapa cara bergantung pada situasi.

Konsep: Menggunakan data biaya dari proyek serupa yang telah selesai di masa lalu sebagai acuan untuk memperkirakan biaya proyek baru. Keterangan: Seperti membandingkan apel dengan apel. Jika proyek baru mirip dengan proyek lama, kita bisa menggunakan data biaya proyek lama sebagai perkiraan awal. 2. Bottom-up Estimating (Estimasi Bawah-Atas): Konsep: Memecah proyek menjadi bagian-bagian kecil yang lebih mudah diestimasi biayanya, lalu menjumlahkan estimasi biaya dari semua bagian tersebut untuk mendapatkan total biaya proyek. Keterangan: Mirip dengan menyusun puzzle. Kita estimasi biaya tiap kepingan puzzle, lalu menjumlahkannya untuk mendapatkan total biaya gambar puzzle. 3. Parametric Estimating (Estimasi Parametrik): Konsep: Menggunakan model matematika atau persamaan statistik untuk menghubungkan biaya proyek dengan variabel-variabel proyek (parameter). Keterangan: Seperti menggunakan rumus. Jika kita tahu parameter proyek (misalnya luas bangunan), kita bisa menggunakan rumus untuk menghitung estimasi biaya. 4. Three-Point Estimates (Estimasi Tiga Titik): Konsep: Menggunakan tiga jenis estimasi (optimis, realistis, pesimis) untuk memperkirakan biaya proyek, lalu menghitung rata-rata tertimbang dari ketiga estimasi tersebut. Keterangan: Lebih akurat karena mempertimbangkan berbagai kemungkinan. Kita punya perkiraan terbaik, terburuk, dan perkiraan yang paling mungkin terjadi. 2. Analisis biaya menjadi sulit karena adanya dampak inflasi tak terduga, perubahan tak terpredikisi dari teknologi, dan pasar input output yang bersifat dinamis. Historical vs Current Cost 1. Penyimpangan antara biaya-biaya ekonomi dengan valuasi akuntansi adalah hal yang biasa. 2. Analisis yang akurat melibatkan pertimbangan yang hati-hati untuk semua alternatif keputusan yang relevan. Biaya dapat didefinisikan dalam beberapa cara bergantung pada situasi.

Fair value accounting continues to be a topic of significant interest and debate among the preparers and users of financial information. Fair value continues to be an important measurement basis in financial reporting. It provides information about what an entity might realize if it sold an asset or might pay to transfer a liability. In recent years, the use of fair value as a measurement basis for financial reporting has been expanded, even as the debate over its usefulness to stakeholders continues. Determining fair value often requires a variety of assumptions, as well as significant judgment. Thus, investors desire timely and transparent information about how fair value is measured, its impact on current financial statements, and its potential to impact future periods. There are numerous items for which fair value measurements are required or permitted. ASC 820 and IFRS 13 ("the fair value standards") provide authoritative guidance on fair value measurement. The increased use of fair value requires companies to refresh measurement policies and procedures. Companies should analyze how fair value is determined when no active market exists, and establish procedures to develop the appropriate disclosures. Valuation professionals may need to be involved early in the process. Appropriate and robust disclosures in the financial statements are necessary to inform investors about measurement methods and uncertainty. The increasing needs for disclosures may require the establishment new processes and databases to record and report the information.

The article analyses the concept of fixed tangible assets and the process of accounting methodology. The main issues of accounting for fixed tangible assets are examined: methods of acquiring assets, initial recognition of assets, their assignment to an asset group, subsequent revaluation, and depreciation. The direct and indirect costs constituting the cost price of acquisition and production of fixed tangible assets are shown in detail. The results of the analysis revealed that the accounting of fixed tangible assets in the company complies with the provisions of the 12 Lithuanian financial reporting standards, but it is suggested to improve the methodology of determining the fair value of fixed tangible assets. Keywords: asset accounting, recognition criteria, business accounting standards, accounting methodology.

This study focuses on Fair value accounting and measurability so as to know how realistic is International Financial Reporting Standards (IFRS. The main objective of the paper is to examine how realistic is IFRS vis-avis the influence of fair value Accounting and measurability on profitability. The study employs content-analysis research method to review literature relevant to International Financial Reporting Standard (IFRS) 13. The data generated were analyzed using the OLS regression technique. The study concluded that financial reporting measurementsof performance and financial positionaffect almost everyone. They help to determine the allocation of capital across countries, economic sectors and companies and within individual businesses. They may well determine whether a business is regarded as a failure or a success, whether its employees earn a bonus, whether they keep their jobs, what dividends investors receive, and how much tax the business pays.

This paper investigates the role incremental information content of inflation-adjusted data plays in explaining the market value of equity and stock returns on the Istanbul Stock Exchange (ISE). We show the effect of inflation accounting application on basic financial ratios, and we test the value relevance of inflation-adjusted and historical cost-based book value and earnings. The findings show that inflation adjustment affects financial ratios significantly, which may create different risk assessments for the selected firms. Furthermore, the results indicate that both inflation-adjusted and historical cost-based earnings and book values are significantly value relevant. The two sets of data are not to be used as substitutes, but, rather, they are complementary. For this reason, inflationadjusted data should be required as supplementary data to the historical cost information rather than in place of historical cost data.

Em virtude da adocao das novas praticas contabeis, o objetivo deste estudo foi analisar o impacto das mudancas na Legislacao Societaria Brasileira em 2008 no indice de conservadorismo das companhias abertas. O estudo, do tipo exploratorio, com abordagem quantitativa e qualitativa foi realizado em uma populacao constituida pelas cem maiores companhias abertas por valor de mercado, segundo a Revista Exame Melhores e Maiores de julho de 2009. A amostra final ficou composta pelas 20 empresas que apresentaram os ajustes no Patrimonio Liquido e no Resultado em 2008. Os dados relativos as demonstracoes financeiras de 31/12/08 foram coletados no sitio da CVM ou das proprias empresas, quando nao disponiveis no primeiro no momento de coleta dos dados. Para a analise quantitativa foi utilizado o modelo adaptado do indice de conservadorismo de Gray (2001). Os principais resultados evidenciaram: falta de uniformidade na divulgacao dos efeitos dos ajustes decorrentes das novas praticas contabeis;...

This study aimed to critically examine the effects of fair value accounting and historical cost accounting on the reported profits. However, since the major objective of any business organization is to make profit and continue in business, what they face in the course of doing their business and the method of accounting they use in reporting their profit may make this noble objective to be unrealistic particularly during inflationary period. Data were collected from both primary and secondary sources and presented and analyzed using ordinary least square. The study revealed that both historical cost and fair-value accounting have significant effect on reported profit. Conclusively, Based on the findings of the study, it is concluded that the amount calculated as depreciation, charged as taxes and paid as dividends greatly influence the operating profit of the company. This simply means that the method of profit measurement will greatly influence the amount charged as taxes, depreciation and dividend on the profit of the company. The study recommended that companies should prepare their financial report using both historical cost and fair-value methods simultaneously. This will allow the companies to know the true financial position of their companies before declaring dividend and other benefits.

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This study examines accounting standard ASR 118 mandating the reporting of fair values of investment securities. Using a unique setting, the United States public venture capital industry, we test whether ASR 118 would be important to investors, or whether relevance would come at the expense of representational faithfulness. We examine the relevance and representational faithfulness of manager- reported fair value estimates and find that fair value estimates do provide relevant information incremental to historical cost as evidenced by its effect on share value. We also find that fair value estimates are representationally faithful, based on comparing fair value estimates provided during the last year before the exit to actual cash realized exit price.

Resumen Este artículo analiza las transformaciones del pensamiento contable en el marco de las Normas Internacionales de Información Financiera (NIIF), donde la teoría microeconómica del mercado ha ejercido una influencia relevante el criterio de maximización del valor y la teoría financiera, conjuntamente con el enfoque de gobierno corporativo anglosajón, que se manifiestan concretamente en el modelo del valor razonable, todo ello en el contexto del desarrollo del capitalismo financiero y de los mercados de capital, la globalización económica y la prevalencia del paradigma económico neo liberal. Se examina la pertinencia, en los países no desarrollados, del enfoque del valor adoptado por las NIIF y se encara el tema de la no neutralidad ideológica y epistemológica de ese cuerpo normativo en general y del modelo del valor razonable en particular. Palabras clave: Globalización, financiarización, financiarización contable, valor, teoría del valor, valor razonable, gobierno corporativo...

A procura pela adequação da contabilidade às necessidades de geração de informações úteis aos usuários na tomada de decisão vem sendo produto de diversas discussões no âmbito acadêmico. Observa-se que a obtenção de informação de qualidade não é um processo simples, atributos como a relevância e representação fidedigna podem apresentar disparidade devido ao método de reconhecimento utilizado, tais como custo histórico e o Fair Value. Nesse contexto, o objetivo deste trabalho consiste em identificar as abordagens temáticas e metodológicas sobre "Fair Value" em periódicos veiculados nacional e internacionalmente no período de 1992 a 2012. Para tanto foram pesquisados 66 artigos na área durante os 20 anos. A análise dos dados demonstra uma predominância de artigos de origem americana (52). Evidencia-se também um expressivo número de pesquisas com a autoria de Mary E. Barth (5), destacando-se como referência nessa área de estudo. Os resultados revelam que estudos sobre o Fair Value ainda são incipientes no âmbito nacional, demonstrando um amplo horizonte a ser explorado.

The quality of financial information in Nigeria regarding property, plant and equipment, particularly in the manufacturing sector, remains a significant concern. In view of this, this present study examined the relationship between property, plant and equipment measurement and financial reporting quality of manufacturing firms in Nigeria. The specific objectives were to ascertain the effect of PPE measurement using cost model on faithful representation of financial information of manufacturing firms in Nigeria and to assess the effect of PPE measurement using revaluation model on faithful representation of financial information of manufacturing firms in Nigeria. This study adopted a survey research design with data collected through the administration of a fivepoint Likert Scale questionnaire to a sample of 360accounting staff across selected manufacturing firms in Nigeria. The data collected were analyzed using descriptive statistics tools and Pearson product moment correlation analysis via SPSS 25.0 statistical package. The study findings revealed that PPE measurement using cost model has an insignificant positive relationship (r= 0.039{p=0.468>0.05}) with faithful representation of financial information of manufacturing firms in Nigeria while PPE measurement using revaluation model has a significant positive relationship (r= 0.733{p=0.000<0.05}) with faithful representation of financial information of manufacturing firms in Nigeria. It was thus concluded that the use of the revaluation model for PPE measurement leads to more accurate and reliable financial information, which enhances the credibility of financial statements and increase stakeholder trust. The study recommended, amongst others, that regulatory bodies in Nigeria should consider mandating the use of the revaluation model for PPE measurement in financial reporting to enhance the credibility of financial information at all times.

Following the theories of gray and positive accounting this study examines the options in the measurement of assets and the usefulness of fair value. Using a sample of 104 Portuguese and Spanish companies with listed securities, the research analyzes factors associated with the fair value option and whether the listing incorporates this information. The results reveal a conservative behavior, where only 19% of companies use the fair value, specially the Portuguese (35%), confirming that the country of origin has a significant influence on this choice. The fair value option is more expressive on investment properties, and less expressive in intangibles. The sectors denote significantly different behaviors, and companies with higher quotes are more cautious using the fair value. The market reacts differently about the nature of this information. It is favorable to its sectorial utilization, reacting negatively to a more widespread use (Portugal), which supports the argument that the r...

This study aimed to analyze the perception of academic and practitioner on the implementing of fair value in Indonesia. The implementing of fair value in Indonesia is still a new thing, because many companies are still using the historical cost. Changes in the measurement from historical cost to fair value may affect the results of the financial statements, so this caused debate among various parties, both from academics and practitioners. This study used primary data which derived from academics, the university accounting lecturers and practitioners whom are auditors who work in public accounting firms in Semarang. Each sample consist of 46 accounting lecturers and 44 accounting practitioners, so total of the respondents are 90 respondents. Respondents were given a questionnaire and asked to respond the statements using a Likert scale. Data were analyzed using one-sample t test, independent sample t test, if it doesn&#39;t normally distributed then use the Mann-Whitney U test. This...

The quality of financial information in Nigeria regarding property, plant and equipment, particularly in the manufacturing sector, remains a significant concern. In view of this, this present study examined the relationship between property, plant and equipment measurement and financial reporting quality of manufacturing firms in Nigeria. The specific objectives were to ascertain the effect of PPE measurement using cost model on faithful representation of financial information of manufacturing firms in Nigeria and to assess the effect of PPE measurement using revaluation model on faithful representation of financial information of manufacturing firms in Nigeria. This study adopted a survey research design with data collected through the administration of a fivepoint Likert Scale questionnaire to a sample of 360accounting staff across selected manufacturing firms in Nigeria. The data collected were analyzed using descriptive statistics tools and Pearson product moment correlation analysis via SPSS 25.0 statistical package. The study findings revealed that PPE measurement using cost model has an insignificant positive relationship (r= 0.039{p=0.468>0.05}) with faithful representation of financial information of manufacturing firms in Nigeria while PPE measurement using revaluation model has a significant positive relationship (r= 0.733{p=0.000<0.05}) with faithful representation of financial information of manufacturing firms in Nigeria. It was thus concluded that the use of the revaluation model for PPE measurement leads to more accurate and reliable financial information, which enhances the credibility of financial statements and increase stakeholder trust. The study recommended, amongst others, that regulatory bodies in Nigeria should consider mandating the use of the revaluation model for PPE measurement in financial reporting to enhance the credibility of financial information at all times.

The quality of financial information in Nigeria regarding property, plant and equipment, particularly in the manufacturing sector, remains a significant concern. In view of this, this present study examined the relationship between property, plant and equipment measurement and financial reporting quality of manufacturing firms in Nigeria. The specific objectives were to ascertain the effect of PPE measurement using cost model on faithful representation of financial information of manufacturing firms in Nigeria and to assess the effect of PPE measurement using revaluation model on faithful representation of financial information of manufacturing firms in Nigeria. This study adopted a survey research design with data collected through the administration of a fivepoint Likert Scale questionnaire to a sample of 360accounting staff across selected manufacturing firms in Nigeria. The data collected were analyzed using descriptive statistics tools and Pearson product moment correlation analysis via SPSS 25.0 statistical package. The study findings revealed that PPE measurement using cost model has an insignificant positive relationship (r= 0.039{p=0.468>0.05}) with faithful representation of financial information of manufacturing firms in Nigeria while PPE measurement using revaluation model has a significant positive relationship (r= 0.733{p=0.000<0.05}) with faithful representation of financial information of manufacturing firms in Nigeria. It was thus concluded that the use of the revaluation model for PPE measurement leads to more accurate and reliable financial information, which enhances the credibility of financial statements and increase stakeholder trust. The study recommended, amongst others, that regulatory bodies in Nigeria should consider mandating the use of the revaluation model for PPE measurement in financial reporting to enhance the credibility of financial information at all times.

The paper introduces a conceptual framework for an accounting of the municipal real property, and defines a respective system of indicators. The development of this framework is seen as an important prerequisite for the efficient property management. It aims to overcome the lack or poor accessibility of the information, and thus to ensure the successful municipal real property management in a strategic context. The developing of the applied approach implies that accounting indicators are divided into three main groupsvalues, revenues, and costs. Beside the above mentioned classification, the municipal revenues and costs are classified also as existing and proposed. The existing indicators are defined by International Accounting Standards in public sector, and some of them are considered as being appropriate for the inclusion in the financial analysis as accounting system entries. The proposed indicators are perceived as appropriate to carry out a detailed analysis of the municipal property at a lower level of desegregations. The first two paragraphs explain the main bases for the municipal property valuation-historical cost, current price, market value, present value, with a special emphasis on the use of the historical value, and the types of valuation respectively. The next three paragraphs are concentrated mainly on the accounting indicators for the municipal property assessment. The sixth paragraph represents several major accounting bases-an accounting value, a carrying value, a market value, an accumulated depreciation, revenues from the sale of assets and services, costs by economic elements, revenues from future periods and costs for future periods, and revenues from other events and costs for other events. The seventh section presents a brief comparative analysis of accounting systems of 6 municipalities in SouthEastern Europe and the last paragraph highlights the identified "good practices".

In recent years, the use of statistical analysis in academia and enterprises has been developing. Generally, students, professors, workers, and users are usually exposed to statistical analysis at some point. Sometimes, it is difficult to perform this type of analysis. Few people have theoretical knowledge to understand statistical analysis clearly, sometimes even the results given. Often, academic institutions or companies require users to provide reports but do not have time to explore or understand the results or tasks required for optimal data preparation. The statistical methods involved in conducting a study include planning, designing, collecting data, analyzing, deriving meaningful explanations and reporting the study results. The statistical analysis gives meaning to meaningless numbers, thus making life lifeless. Only by using appropriate statistical tests can the results and inferences be accurate. In this work, we provide a statistical overview of some accounting research conducted in various countries to reveal the importance of statistical analysis in completing accounting and finance research.

International accounting standards improve comparability between companies, thereby reducing investor risk and facilitating cross-border financing and investment. It also reduces the cost of preparing consolidated financial statements for multinational companies. Thus, this work reviewed 15 articles among different countries about the role of IAS in unifying budget accounts with accordance with financial accounting system. The findings reveal that most of the reviewed articles recommend that IAS can play a significant role on the mentioned mission. Although, the existing IAS still need to improvement and changes based on the accounting development.

In recent years, the use of statistical analysis in academia and enterprises has been developing. Generally, students, professors, workers, and users are usually exposed to statistical analysis at some point. Sometimes, it is difficult to perform this type of analysis. Few people have theoretical knowledge to understand statistical analysis clearly, sometimes even the results given. Often, academic institutions or companies require users to provide reports but do not have time to explore or understand the results or tasks required for optimal data preparation. The statistical methods involved in conducting a study include planning, designing, collecting data, analyzing, deriving meaningful explanations and reporting the study results. The statistical analysis gives meaning to meaningless numbers, thus making life lifeless. Only by using appropriate statistical tests can the results and inferences be accurate. In this work, we provide a statistical overview of some accounting researc...

International accounting standards improve comparability between companies, thereby reducing investor risk and facilitating cross-border financing and investment. It also reduces the cost of preparing consolidated financial statements for multinational companies. Thus, this work reviewed 15 articles among different countries about the role of IAS in unifying budget accounts with accordance with financial accounting system. The findings reveal that most of the reviewed articles recommend that IAS can play a significant role on the mentioned mission. Although, the existing IAS still need to improvement and changes based on the accounting development.

This final degree project is devoted to non-financial fixed assets valuation, which can basically be done following the revaluation and the historical cost models. The topic is analyzed from both a theoretical and practical perspective. I first revise the differences between the two models, as included in the IASB standards. Then, I review the main arguments that different authorized voices put forward for and against both models from the perspective of their contribution to the usefulness of accounting information. Finally, I develop a simulated case where I compare the effect of the two models on financial statements and key financial indicators.

The circumstances which led to the development of each of these methods of accounting will be examined to better understand the context in which each technique was to be incorporated and its effect. Analysis will be performed on whether the use of these accounting practices changed since their inception and if so, for what purpose. The researcher will discuss how and if these accounting procedures become instrumental in relation to the valuation of housing assets, particularly in America. As a result of the financial crisis, some experts have expressed the opinion that Fair Value Accounting as opposed to the historical cost approach exacerbated the housing crisis while others have developed opinions that Fair Value Accounting had no negative affect on the crisis and in fact allowed for greater transparency in disclosure. The finding will analyze the effect of Fair Value Accounting on the housing crisis and whether the historical cost valuation method would be more effective and less...

The aim of this paper is to examine the value relevance of fair value accounting of biological assets under IAS 41-Agriculture-using 389 firm-year observations of listed firms in 27 countries worldwide that had adopted IFRS, for the period between 2011 and 2013. In order to operationalize it as the ability of book value to explain market equity value, this study adjusts the original Ohlson model. The results confirm that recognized biological assets are value relevant at fair value and they are more value relevant in firms that exhibit higher disclosure levels. The same results were obtained when this analysis was conducted for bearer biological assets, but when it was applied to consumable biological assets, the results suggest that investors do not value recognized biological assets in firms that exhibit higher disclosure levels. Bearing in mind the current adjustments to IAS 41, according to which firms will be permitted to choose either the cost or the revaluation models for mature bearer plants under IAS 16-Property, plant and equipment-for annual periods beginning on/or after 1 January 2016, this paper seeks to help standard setters to better understand the market valuation implications of this standard.

Despite the relevance of fair value accounting to the financial statements, it was not adopted by standard setting bodies until recently. This paper investigates the evolution of fair value accounting in the USA and shows that several factors, such as accounting standard setting bodies, government, business and investor-related issues contributed to the lack of adoption of fair value accounting between the 1930s and 1990s. The paper further discusses changes in the standard setting environment as well as other criteria, such as technological advancements, that have contributed to the recent adoption of fair value accounting.

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The possible impact that IFRS adoption may have on the relevance of accounting information of some selected quoted industrial goods sector firms in Nigeria. The studied periods spanned from 2003-2011 (pre-IFRS periods) and 2012-2020 (post-IFRS periods). The sample used in this article consisted of ten (10) readily chosen quoted industrial businesses. In the study, the share price served as both a regressand and a regressor, together with earnings per share and book value per share. The provided data were examined using descriptive statistics, a correlation matrix, and a variance inflation factor. The study opted for the Panel Corrected Standard Error (PSCE) due to heteroskedasticity challenges. The study finds that, on the overall, accounting information produced under the pre-IFRS periods are more value relevant than accounting information produced under the post-IFRS periods. Similarly, earnings per share during pre-IFRS periods have higher value relevance than post-IFRS periods. On the contrary, compared to the pre-IFRS periods, the post-IFRS periods have a higher value relevance for book value per share. The study concludes that the implementation of IFRS has not yet fully boosted the value relevance of accounting information for listed industrial products sector enterprises in Nigeria. As such, the recommends that management of the

In this activity, you are introduced to the auditor selection process and how indicators of an auditor’s audit quality may influence that process. You will gain an understanding of factors that can affect audit quality and apply that knowledge in a decision-making task – selecting an auditor
for Bradco. The CAQ, PCAOB, IAASB, and other entities classify indicators according to how they impact audit quality. By completing the activity, you will learn to delineate how certain inputs (e.g., auditor training) may influence how an audit is conducted and certain outputs (e.g., PCAOB inspection findings) may measure or indicate whether an audit was conducted with an appropriate level of quality. The activity also demonstrates how indicators of audit quality may be used by audit committee members and company management to evaluate and select an auditor.

Investors have become the most important users of financial statements in modern business conditions, and mixed base of financial reporting has been established in order to meet their information needs and it includes elements of the concept of historical cost and the fair value concept, with an increasing shift towards the fair value concept. The primary task of fair value accounting becomes the expression of the fair value of the net assets at the reporting date, while the financial results represent the change in fair value of net assets between the two reporting periods. In our country the application of the "full IFRS" is mandatory for large enterprises and the application of IFRS for SMEs is mandatory for small and medium-sized entities, thus fair value accounting becomes an integral part of the financial statements of domestic companies. However, fair value accounting is not a suitable concept for our country characterized by shallow and underdeveloped financial market, companies whose owners are the company managers at the same time, and low level of economic and technological development. A financial statement audit in terms of the use of the fair value concept becomes much more demanding and complex than the audit of the financial statements based on historical cost accounting.

Some balance sheet items are the result of judgments, including fair value estimates, so the relevant evidence is very complicated to collect by auditors, thus the risk of misstatements in financial statements is inevitably greater. The research objective of this paper is to: a) highlight the problems encountered by auditors from developing countries when auditing FV accounting estimates; b) identify the challenges that auditors from Serbia face in auditing FV accounting estimates; c) consider the possibility of adequately responding to these audit challenges in Serbia. The research confirmed that the problems of auditors in Serbia in the audit of FV estimates are generated by inefficient capital markets, and that they are primarily in the field of FV assessment which are connected  to the impossibility of applying the market model and higher volatility of  FV financial statements, as well as those in the field of auditing techniques used in providing assurance on the objectivity of...

Investors have become the most important users of financial statements in modern business conditions, and mixed base of financial reporting has been established in order to meet their information needs and it includes elements of the concept of historical cost and the fair value concept, with an increasing shift towards the fair value concept. The primary task of fair value accounting becomes the expression of the fair value of the net assets at the reporting date, while the financial results represent the change in fair value of net assets between the two reporting periods. In our country the application of the &quot;full IFRS&quot; is mandatory for large enterprises and the application of IFRS for SMEs is mandatory for small and medium-sized entities, thus fair value accounting becomes an integral part of the financial statements of domestic companies. However, fair value accounting is not a suitable concept for our country characterized by shallow and underdeveloped financial mar...

Purpose of the article: This study investigates the effect of historical cost accounting on the reported profit of a company, with an evaluation of current cost accounting as an alternative reporting method in a high-inflationary and volatile economy as experienced in Nigeria. Using secondary data gleaned from the annual reports and accounts of ten (10) manufacturing companies quoted in the industrial sector of consumer goods of the Nigerian Stock Exchange from 1996-2016. Methodology/methods: To test the formulated hypotheses, a multiple regression model was formulated comprising the depreciation charge, taxes and dividend as the independent variables while reported profits both at historical and current cost of the firm served as the dependent variables. The Ordinary Least Square (OLS) estimation technique was employed to ascertain the interrelationships between the variables. Scientific aim: This research is aimed at empirically investigating, by means of available statistics, the effect of historical cost accounting on the reported profit of a company during period of inflation. Findings: The study revealed that both historical cost and current cost accounting have significant effect on reported profit, as an increase in the depreciation charge, tax bills and dividends declared by firms will occasion a decrease in the reported profit. Conclusions: It is recommended that companies should prepare their financial reports using both historical cost and fair value (current cost) methods simultaneously, as this will allow the companies to ascertain the true financial position of their companies before declaring dividends and other benefits.

The cost of equity is a measure of the required return by investors. It is desirable for firms, especially banks, to lower the cost of equity. There are a number of factors related to the quality of information disclosed that could influence the cost of equity. The accounting regulators aim to improve the quality of information by requiring assets to be valued at fair value. However the application of fair value accounting potentially increases information asymmetry, especially if fair value is estimated and subjected to the judgment of the preparers of financial statements. This asymmetric information problem potentially lowers the information quality and increases investors' estimation risk and thus influences the cost of equity capital. Therefore, this research investigates the effect of fair value accounting on the cost of equity capital for a sample of Asian banks since banks hold a relatively larger proportion of assets at fair value. Using the generalized method of moment model for dynamic panel data, this research finds significant and positive relationship between assets at fair value and the cost of equity. The results found are similar for both quoted and unquoted assets. Thus although to regulators, fair value accounting provide relevant and timely information to investors, assets at fair value are perceived to be risky and as a consequence investors require higher returns.

Bu çalışmada Tarihi maliyet değeri muhasebesi ve gerçeğe uygun değer muhasebesinin olumlu ve olumsuz yanları karşılaştırmalı olarak incelenmiştir. Tarihi maliyet değeri muhasebesi ve gerçeğe uygun değer muhasebesine göre üretilmiş olan bilgilerin; bilgi kullanıcıları açısından taşıması gereken özellikler ve finansal istikrar yönlerinden olumlu ve olumsuz yanları değerlendirilmiştir. Konuyla ilgili literatür incelemesi ile, tarihi maliyet değeri muhasebesi ve gerçeğe uygun değer muhasebesine göre hazırlanmış finansal tabloların birlikte sunulması durumunda; her iki yöntemin olumsuz yanlarının bertaraf edileceği ve finansal krizlerde sorumlu olarak muhasebeyi görenlerin argümanlarının büyük ölçüde ortadan kaldırılacağı sonucuna ulaşılmıştır.

ABSTRACTWhen the fair value of an investment security falls below amortized cost and there is significant doubt that the firm can hold the security until the fair value recovers, an other-than-temporary impairment (OTTI) is recognized in net income. Thus, an OTTI is a disclosure about the prospect of recovering an unrealized loss. Our findings suggest that investors priced banks&#39; OTTI recognition during and after the financial crisis. Investors were unable to fully anticipate reported OTTIs, and priced OTTIs incrementally to reported unrealized gains/losses. After banks were required to bifurcate OTTIs, investors priced only the portion of OTTI recognized in earnings. Our results suggest that reporting unrealized losses in earnings via an OTTI changes how investors price the losses. The results inform recent standard-setting initiatives to expand disclosure about changes in fair value.JEL Classifications: M41; M42; M44.Data Availability: Data are available from sources identifie...

An issue that focuses clearly on the difference between market and book values is accounting for reserves in the extractive industries. The primary determinant of the value of a minerals or oil‐and‐producer is the value of the reserves it controls. Hence, one might expect that managers acting to maximise the value of the firm would try to account for the value of reserves in a credible way. However, we show that financial‐statement recognition of reserve values is rare. We review the reasons for the general reluctance to recognise reserve values in financial statements and comment on the few exceptions.

The objective of the study is to justify the concept of fair value as a theory through International financial Reporting Standard (IFRS). This paper examined what effect would this newly adopted measurement of valuing assets and liabilities have on reported profit disclosed in the financial statement. Three theories that are of interest to this study, depreciation theory, asset theory and profitability theory were reviewed. The study used ex-post factor research design using data analysis of financial information extracted from audited financial statement for the  periods 2009 to 2011 (Pre-IFRS) and 2012 to 2014 (Post-IFRS) which was used to examine how independent variables affects dependent variables during N-GAAP and after adoption of IFRS. In order to arrive at conclusion data of twelve (12) companies in the consumers sector of the manufacturing industry quoted on the Nigerian Stock Exchange analyzed using multiple regression. Findings revealed that Pre-IFRS adoption strengthens...

Житомирський державний технологічний університет Розвиток облікової оцінки специфічних активів Розглянуто сучасні проблеми розвитку облікової оцінки, в т.ч. для ведення бізнесу в умовах гібридної війни. Обґрунтовано необхідність розвитку облікової оцінки в контексті положень неоінституційної теорії на основі виділення ряду причин. Виявлено причини погіршення репутації бухгалтерського обліку як окремого соціально-економічного інституту в контекст розвитку методики обліку специфічних активів. Проаналізовано систему нормативного регулювання облікової оцінки необоротних активів підприємства у випадках зменшення їх корисності. Розроблено порядок визначення та бухгалтерське відображення процесу зменшення корисності активів за МСФЗ 36 «Зменшення корисності активів». Розкрито особливості сумісного використання поняття «вартість при використанні» та «справедлива вартість» в системі бухгалтерського обліку. Розроблено порядок визначення вартості відшкодування в залежності від ступеня специфічності активів. Обґрунтовано необхідність уточнення ознак, які вказують на можливість зменшення корисності специфічних активів (припинення дії або розірвання договору щодо використання специфічного активу). Ключові слова: облікова оцінка; специфічні активи; зменшення корисності активів; гібридна війна. Актуальність дослідження та постановка проблеми. Проблеми розвитку облікової оцінки, як одного з елементів методу бухгалтерського обліку, є одними з найважливіших з позиції подальшого розвитку бухгалтерського обліку як науки. Передусім, це обґрунтовується превалюючою роллю оцінювання серед інших облікових процедур в процесі формування бухгалтерської звітності. Окремі дослідники (А.П. Рудановський, В.Я. Соколов) взагалі абсолютизують роль оцінки в системі обліку, називаючи її основною метою бухгалтерського обліку. На сьогодні в фінансовій звітності, що відповідає концептуальним вимогам, визначеним в міжнародних облікових стандартах, використовується п'ять основних моделей (базисів) оцінки: 1) історична вартість; 2) відновлювальна вартість (поточні витрати); 3) справедлива вартість; 4) вартість реалізації (чиста реалізаційна вартість); 5) вартість в користуванні. Використання найбільш оптимальної моделі або їх комбінації (обґрунтування умов, за яких може використовуватись той або інший метод) для певних елементів фінансової звітності є основною проблемою, яку мають вирішити дослідники в сфері обліку. Проте, внаслідок існування традицій щодо використання окремих методів в обліковій системі (історичні витрати) або неготовність суб'єктів ведення бухгалтерського обліку перейти до використання нових методів (справедлива вартість) виникає ситуація, коли використовувана бухгалтерами оціночна методологія не відповідає ні потребам користувачів облікової інформації, ні особливостям господарської діяльності підприємств, які функціонують в сучасному динамічному ринковому середовищі. Нерелевантність облікової оцінки зростаючим потребам користувачів облікової інформації може зіпсувати репутацію всій системі бухгалтерського обліку, що на сьогодні залишається основним джерелом надання інформації для прийняття економічних рішень та може виступити передумовою для використання менеджментом інших оціночних інструментів. Зокрема, в останні роки з'являється значна кількість управлінських моделей і систем (наприклад, EVA (економічна додана вартість)), які можна розглядати як альтернативні оціночні інструменти, що дозволяють більш об'єктивно та повно відобразити і оцінити господарську діяльність підприємства та врахувати вплив факторів, які залишаються поза увагою обліковою системою, однак впливають на процес формування вартості підприємства. Тому на сьогодні удосконалення облікової оцінки з урахуванням появи нових теоретичних напрацювань, зокрема, неоінституційних теорій і концепцій, а також з урахуванням потреб користувачів облікової інформації та впливу зовнішніх факторів, зокрема для України-господарювання в умовах гібридної війни, є одним із найактуальнішим питань, що має стояти на порядку денному у науковців в сфері бухгалтерського обліку. Аналіз останніх досліджень і публікацій. Питанням розвитку облікової оцінки присвячені праці таких вітчизняних дослідників і вчених як М.