Convergence in Motion: A Review of Fair Value Levels’ Relevance
| Autor: | Rucsandra Moldovan, Anne Jeny, Michel Magnan, Ahmad Hammami, Andrei Filip, Zhongwei Huang |
|---|---|
| Přispěvatelé: | Lille économie management - UMR 9221 (LEM), Université d'Artois (UA)-Université catholique de Lille (UCL)-Université de Lille-Centre National de la Recherche Scientifique (CNRS) |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Accounting
Fair value measurement Motion (physics) Valuation process Fair value 0502 economics and business Convergence (routing) ASC 820 Econometrics Relevance (information retrieval) Business and International Management Mathematics Hierarchy 050208 finance business.industry 05 social sciences 050201 accounting IFRS 13 Meta-analysis Fair value hierarchy SFAS 157 [SHS.GESTION]Humanities and Social Sciences/Business administration business Value (mathematics) Finance |
| Zdroj: | Accounting in Europe Accounting in Europe, Taylor & Francis (Routledge), 2021, 18 (3), pp.275-294. ⟨10.1080/17449480.2021.1912370⟩ Accounting in Europe, 2021, 18 (3), pp.275-294. ⟨10.1080/17449480.2021.1912370⟩ |
| ISSN: | 1744-9480 1744-9499 |
| DOI: | 10.1080/17449480.2021.1912370⟩ |
| Popis: | International audience; The IFRS 13 post-implementation review by the IASB motivates our investigation on the value relevance of fair value (FV) measurement hierarchy (i.e. level 1, level 2, and level 3). First, using a meta-analysis, which allows us to summarize inconsistent empirical findings, we synthesize studies on the value relevance of the FV hierarchy. Overall, value relevance is lower for level 3 than for levels 1 and 2, but it increases over time. In non-U.S. studies, we note lower value relevance across all levels of FV assets. Underlying asset fundamentals, model risk, and measurement process complexity may contribute to this value relevance gap. Second, from interviews with professionals from financial institutions, we note that, in practice, there has been extensive learning about FV accounting since the 2007–9 Financial Crisis and a formalization of the valuation process that the academic literature has yet to fully recognize. We thus highlight conceptual and methodological issues and areas for research with practical implications. |
| Databáze: | OpenAIRE |
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