IFRS Fair Value Measurement and Accounting Policy Choice in the United Kingdom and Australia

Cairns, David; Massoudi, Dianne; Taplin, Ross; Tarca, Ann

doi:10.2139/ssrn.1274024

Cited by 32 publications

(57 citation statements)

References 33 publications

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“…The findings of this study contribute to the international literature, by supplementing previous studies (Muller et al, 2008;Cairns et al, 2011;Andrade et al, 2013;Christensen & Nikolaev, 2013;Freri & Salotti, 2013;Haller & Wehrfritz, 2013;Souza et al, 2013), identifying that, even with the existence of accounting choices in IAS 40, there is comparability between the financial statements of firms from Brazil and Portugal.…”

Section: Final Remarkssupporting

confidence: 80%

“…Thus, one of the primary purposes of IFRS adoption consists in improving comparability of financial statements (Cairns et al, 2011), which is nothing more than making the same economic phenomena look like the same and different economic phenomena look like different, rather than making different phenomena look like the same, and vice versa (International Accounting Standards Board, 2013). Thus, there lies the justification for the existence and persistence of accounting choices in IFRS: offer alternatives so that managers register accounting facts in order to issue comparable financial reports.…”

Section: Comparabilitymentioning

confidence: 99%

“…The results showed that there is a difference between these values and that these deviations may derive from: (i) the lack of confidence in the estimation of IPs' fair value due to limitations in the valuation; (ii) the diversity of approaches applied to the valuation of IPs; and (iii) the reliability problem in the approaches by models usually applied in determining the IPs' fair value. Cairns et al (2011) investigated the use of measurement at fair value in 228 listed companies in the UK and in Australia, at the time of initial IFRS adoption, in 2005.…”

Section: Previous Studiesmentioning

confidence: 99%

“…The accounting convergence process has, as one of its main features, the quest for comparability between financial reports within a country, over time, and between different countries (Cairns, Massoudi, Taplin, & Tarca, 2011). In order to enable such comparability, i.e.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Comparability of Accounting Choices in Future Valuation of Investment Properties: An Analysis of Brazilian and Portuguese Listed Companies

Souza

Botinha

Rogers

et al. 2015

Rev. contab. finanç.

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One of the main purposes for adopting the International Financial Reporting Standards (IFRS) is the quest for comparability between financial statements within the same country, over time, and between different countries. IFRS have the feature of allowing accounting choices in most of their standards. However, the existence of such flexibility in the process for recognizing, measuring, and disclosing assets and liabilities may impact on comparability. IFRS have been criticized both due to their accounting choices and the adoption of the fair value paradigm. This article examines these two issues, investigating the choice of the cost model versus the choice of the fair value model for investment properties (IPs), an option guaranteed under the terms of the International Accounting Standard (IAS) 40. This research aimed to identify the comparability degree and the factors that determine the accounting choices made by managers of IPs, in Brazilian and Portuguese listed companies, within the periods from 2010 to 2012. Comparability, within and between countries, was identified by the T-index and the search for the determining factors of accounting choices made by managers was performed by means of a logistic regression analysis. As a result, it was found that, despite the accounting choices allowed by IAS 40, there was a mean comparability between the accounting practices of firms in these countries, but showing a decrease in the index over the years. The explanatory factors identified were auditing by one of the big four (PricewaterhouseCoopers, Deloitte Touche Tohmatsu, KPMG, or Ernst & Young), companies' indebtedness, relative importance of IPs' balance, net profit, and less experience of Brazil in using the fair value method to appraise IPs.

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Section: Final Remarkssupporting

confidence: 80%

Section: Comparabilitymentioning

confidence: 99%

Section: Previous Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Comparability of Accounting Choices in Future Valuation of Investment Properties: An Analysis of Brazilian and Portuguese Listed Companies

Souza

Botinha

Rogers

et al. 2015

Rev. contab. finanç.

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“…Kang (2007) menyebutkan dengan menggunakan akuntansi nilai wajar dapat meningkatkan prediksi nilai ekonomis masa depan. Dixon & Frolova (2013) Pilihan pengukuran nilai wajar tersebut menurut Cairns et al (2011) dapat berdampak pada daya banding.Hasil penelitian Cairns et al menyebutkan bahwa jika pengukuran nilai wajar disyaratkan (mandatory) oleh standar maka dapat meningkatkan daya banding. Sebaliknya, jika pengukuran nilai wajar diizinkan (opsi) oleh standar, maka menurunkan daya banding.…”

Section: Pendahuluanunclassified

Persepsi Wajib Pajak Terhadap Kepatuhannya Dalam Membayar Pajak Menggunakan Confirmatory Factor Analysis (Studi Terhadap Wajib Pajak Daerah Yg Terdaftar Pada Dinas Pelayanan Pajak Kota Bandung)

Saraswati

Sofia

2016

JRAK

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Investigating international differences in financial reporting: Data problems and some proposed solutions

Nobes

Stadler

2018

The British Accounting Review

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This paper is designed to assist researchers in international accounting by analysing a number of problems which they might meet. In particular, we focus on problems related to selecting the sample, specifying the variables, using databases and hand-collecting data. We provide examples of the problems from prior literature and, on some topics, by supplying original data. We suggest solutions to the problems discussed in the paper.

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IFRS Fair Value Measurement and Accounting Policy Choice in the United Kingdom and Australia

Cited by 32 publications

References 33 publications

Comparability of Accounting Choices in Future Valuation of Investment Properties: An Analysis of Brazilian and Portuguese Listed Companies

Comparability of Accounting Choices in Future Valuation of Investment Properties: An Analysis of Brazilian and Portuguese Listed Companies

Persepsi Wajib Pajak Terhadap Kepatuhannya Dalam Membayar Pajak Menggunakan Confirmatory Factor Analysis (Studi Terhadap Wajib Pajak Daerah Yg Terdaftar Pada Dinas Pelayanan Pajak Kota Bandung)

Investigating international differences in financial reporting: Data problems and some proposed solutions

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