Full-Text Search:
Home|Journal Papers|About CNKI|User Service|FAQ|Contact Us|中文
《Accounting Research》 2009-07
Add to Favorite Get Latest Update

The Role of Fair Value and Transaction Based Accounting Measures in Providing Information on Firm Value

James Cataldo & Morris McInnes  
This paper examines the choice between Fair Value and transaction based accounting measures in the context of firm valuation.The paper argues that Fair Value cannot directly measure the economic value of the firm as a simple difference between assets and liabilities.Instead,it is necessary to use financial models to estimate equity values.Net income from the traditional revenue - expense model is an essential input to these models.A problem arises when Fair value reporting of balance sheet amounts within the revenue—expense accounting model conflicts with the measurement of net income.This reduces the usefulness of financial reporting for equity investors in particular because it interferes with the application of equity valuation models.Our analysis suggests that Fair Value information is most useful to investors when it is presented in disclosures, separately from the traditional system of income statement and balance sheet financial reports.However,there are no simple answers to the measurement challenges presented by the traditional financial statements of the revenue - expense model.Recent history,including FASB responses to the US financial crisis,(FAS157 -4 and FSP FAS115 and FAS 124 -2) shows a continuing process of adjustment and compromise between different measurement approaches.We conclude that the benefits of different accounting measurements depend not on their individual characteristics,but on how they contribute to the objectives of the accounting system.
【Key Words】:
【CateGory Index】: F233
Download(CAJ format) Download(PDF format)
CAJViewer7.0 supports all the CNKI file formats; AdobeReader only supports the PDF format.
【References】
Chinese Journal Full-text Database 5 Hits
1 WANG Hui (Accounting Department,Anhui Business Vocational College,Hefei 230041,China);The Choice in Measurement Mode of Financial Accounting at Post-Financial Crisis Period[J];Journal of Anhui Agricultural University(Social Science Edition);2010-05
2 Wang Hui1,Gao Ke-zhi1 & Wang Bin2(1.Department of Accounting,Anhui Business Vocational College,Hefei,Anhui 230041,China;2.School of Business,Beijing Technology and Business University,Beijing 100048,China);The Improvement of Fair Value Measurement:A Study based on the Perspective of Accounting[J];Journal of Beijing Technology and Business University(Social Science);2011-01
3 YAN Zhi-juan(Nanjing Audit University,Nanjing 210029,China);On the Impact of Fair Value Measurement on the Performance Report of Listed Companies: A Case Analysis of Air China[J];Journal of Jiangxi University of Finance and Economics;2011-03
4 Yuan xi-shou The Economics and Management School,East China Jiao Tong University,Nanchang,Jiangxi .330013;Study on Fair Value and Accounting Conservatism[J];Accounting and Finance;2009-06
5 XIA Ying (Northeast University of Finance,);Elements of the Fair Value of its Measurement Properties[J];Journal of Jilin Province Economic Management Cadre College;2010-06
China Proceedings of conference Full-text Database 1 Hits
1 The Ecnomics And Management School,East China Jiao Tong University, Nanchang, Jiangxi .3300013;Fair Value And Accounting Conservatism[A];[C];2009
【Citations】
Chinese Journal Full-text Database 3 Hits
1 Ge Jiashu Xuyue;Research on Measurement Attributes of Accounting:Market Price,Historical Cost,Current Cost and Fair Value[J];Accounting Research;2006-09
2 Lu Yujian et al.;On Fair Value Measurements and Disclosures Based on Uncertainties[J];Accounting Research;2007-02
3 Xia Chengcai & Shao TianYing;A Theoretical Analysis of Fair Value Accounting Practice[J];Accounting Research;2007-02
【Co-citations】
Chinese Journal Full-text Database 10 Hits
1 FU Li (School of Economics and Management,Dalian Maritime University,Dalian 116026,China);The Impact of Fair Value on Corporation Financial Information[J];Commercial Research;2007-12
2 WANG Hong-mei1,LIU Xue2(1.Finance Office,Jilin University,Changchun 130012,China;2.School of Economics,Jilin University,Changchun 130012,China);Practical application of fair value measurement method——Taking People's Insurance Company of China as a case[J];Journal of Changchun University;2008-11
3 GAI Di,LIANG Shu-hong(School of Commerce,Tianjin University of Finance and Economics,Tianjin 300222,China);Fair Value: Paradox of Pursuit to Ideal Accounting[J];Collected Essays on Finance and Economics;2009-04
4 SHAO Jun-li,TU Jian-ming (1.Bussniss School,Nanjing University,Nanjing,Jiangsu 210093,China;2.Nanjing Audit University,Nanjing,Jiangsu 210029,China);Technology Support of Accounting Informationization to Fair Value Application[J];The Theory and Practice of Finance and Economics;2008-06
5 DAI Wei(Xiangtan University,Xiangtan 411105,China);Thoughts About Asset Evaluation for Financial Statement Under Fair Value[J];Journal of Shanxi Finance and Tax College;2009-01
6 WANG Jian-ling1,SONG Lin2,ZHANG Xue-liang1(1.School of Management,Xi' an Jiaotong University,Xi'an 710049,China;2.School of Economics and Finance,Xi'an Jiaotong University,Xi'an 710061,China);Can Fair Value Measurement Improve the Value Relevance of Quarterly Accounting Earnings——Evidence from Listed Companies in Banking,Insurance,Building & Real Estate Sectors[J];Modern Economic Science;2008-06
7 HOU Feng(Department of Accounting,Foshan University,Foshan 528000,China);Just and Fair Value: the Theoretical Interpretation of Report[J];Journal of Foshan University(Social Science Edition);2009-01
8 Pan Yan (Teaching and Research Department of Management,Guangdong Provincial Party School,Guangzhou,510050 China);The Criterion of Fair Value and Financial Stability in New Era[J];South China Finance;2008-11
9 XU Quan-hua(School of Business,Guangxi University,Nanning 530004,China);Knowledge and Current Problems on Conceptual Framework for Financial Accounting[J];Journal of Guangxi University of Finance And Economics;2007-04
10 ZHONG Zi-ying(Guangdong Finance and Economics College,Guangzhou 510420,China);Analysis on Fair Value Measurement Property Applied to Financial Instruments Standard[J];Journal of Guangxi University of Finance and Economics;2008-05
China Proceedings of conference Full-text Database 6 Hits
1 Lin Wanxiang1 ,Xu Songtao2 1 School of Accounting, Southwestern University of Finance and Economics, Chengdu, 610074, China 2 School of Business, Centre South University, Changsha, 410083, China;Comment on Accounting for Asset Retirement Obligations in America——and discussion on use of fair value in accounting for nonfinancial liabilities[A];[C];2008
2 Dai Xinmin Liu Chun Sun Liang;Study on the Essence and Application of Fair Value[A];[C];2006
3 LIU Ha,YANG Erjia,LI Hao,SUN Zheng(Institute of Accounting and Finance,Shanghai University of Finance and Economics,200433);Fair Value Measurement and Dynamic Adjustment for Compensation Contracts of Senior Managers[A];[C];2010
4 ;Discussion about Fair Value Measurement Model of Information Disclosure——From the perspective of the use of information methods[A];[C];2010
5 Jiping Wang Beijing Technology and Business School,Beijing 10048;On the Development of Internal Control Standards Over Fair Value Measurement[A];[C];2009
6 ;公允价值会计对银行业的影响——一个文献综述[A];[C];2010
【Co-references】
Chinese Journal Full-text Database 10 Hits
1 CHEN Jin (Accounting Department,Anhui Institute of Finance and Trade,Bengbu 233041,Anhui,China);Reponderations on the Evenhanded Value Resulting from Financial Fraud[J];Journal of Anhui University of Technology(Sociel Sciences);2003-02
2 YU Yong-sheng (School of Accounting,Zhejiang University of Finance and Economics,Hangzhou 310012,China);A Study on Fair Value Accounting Applications in America[J];Collected Essays on Finance and Economics;2005-05
3 LIU Hao,SUN Zheng (Institute of Accounting and Finance, Shanghai University of Finance and Economics, Shanghai 200433, China);The Analysis to Positive Research on Fair Value and Chinese Opportunities[J];Journal of Finance and Economics;2008-01
4 WU Shui-peng,MOU Shao-hong(School of Management,Xiamen University,Xiamen 361005,China);The Effect of Voluntary Audit and Fair Value on Earnings Management:Empirical Evidence Based on Interim Reporting of Listed Companies in China from 2006 to 2007[J];Journal of Finance and Economics;2009-03
5 Liu Wenhuan (Shandong Economic University, Jinan, Shandong 250014);Analysis on the Fair Value Measurement Mode of Investment Property[J];Communication of Finance and Accounting(Academy Version);2007-11
6 Zhao Xuanmin Wang Jiapin(Economics and Management School,Xi'an Shiyou University,Xi'an,Shanxi 710065);An Empirical Investigation on Value Correlation between Fair Value and Listed Companies' Accounting Information[J];Communication of Finance and Accounting;2009-06
7 LUO Sheng-qiang (Accounting Department,Xiamen University,Xiamen,Fujian 361005,China);Fair Value Accounting:Theory Analysis and Empirical Evidence[J];The Theory and Practice of Finance and Economics;2006-05
8 XIE Shi-fen(College of Accounting,Hunan University,Changsha,Hunan 410079,China);On Key Points in Theory and Practice of Fair Value Accounting and Auditing[J];The Theory and Practice of Finance and Economics;2006-06
9 ZHANG Chun-hua(Jiangxi University of Finance and Economics,Nanchang 330013,China);Fair Value and Accounting Supervision[J];Contemporary Finance & Economics;2009-03
10 WANG Jian-ling1,SONG Lin2,ZHANG Xue-liang1(1.School of Management,Xi' an Jiaotong University,Xi'an 710049,China;2.School of Economics and Finance,Xi'an Jiaotong University,Xi'an 710061,China);Can Fair Value Measurement Improve the Value Relevance of Quarterly Accounting Earnings——Evidence from Listed Companies in Banking,Insurance,Building & Real Estate Sectors[J];Modern Economic Science;2008-06
【Secondary Citations】
Chinese Journal Full-text Database 4 Hits
1 REN Shi chi,CHEN Bing hui (Guangdong University of Finance,Guangzhou,Guangdong 510520,China);A Research on Fair Value Accounting[J];The Theory and Practice of Finance and Economics;2005-01
2 Wang Yuetang,Zhou Xue & Zhang Li;Write-down of long-term assets:The reflection of fair value or the action of earnings management?[J];Accounting Research;2005-08
3 Deng Chuanzhou;The Value Relevance of Fair Value:Evidence form B-share Companies[J];Accounting Research;2005-10
4 Yao Guoqing;On the Value Base of Invented Assets[J];Nankai Economic Studies;2001-02
©2006 Tsinghua Tongfang Knowledge Network Technology Co., Ltd.(Beijing)(TTKN) All rights reserved