IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v6y2012i3p93-102.html
   My bibliography  Save this article

Accountant And User Perceptions Of Fair Value Accounting: Evidence From Fiji

Author

Listed:
  • Rajni Devi
  • Joycelyn Devi
  • Rashika Kumar
  • Charlotte Taylor

Abstract

This paper through use of proxies for users and preparers of financial reports, finds the definition and understanding of ‘fair value accounting’, and identifies how it is measured (for shares and property investments) in Fiji. The paper also studies benefits and limitations of the concept, examines its impact on financial reporting roles, determines appropriate alternatives of this method and forecasts its prominence and endurance in Fiji. The paper concludes that users and preparers of financial reports have similar understanding of fair value accounting. Some measurement techniques identified were the use of active markets, independent valuers and referrals to cost. Some benefits identified were better disclosure and information that is more relevant. Proxies also identified limitations of the method in terms of costs of valuation, training and hiring of professionals, and the application of subjective judgment. The proxies predict prominence of fair value accounting in the long run.

Suggested Citation

  • Rajni Devi & Joycelyn Devi & Rashika Kumar & Charlotte Taylor, 2012. "Accountant And User Perceptions Of Fair Value Accounting: Evidence From Fiji," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(3), pages 93-102.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:3:p:93-102
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v6n3-2012/GJBR-V6N3-2012-9.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rayman, R.A., 2007. "Fair value accounting and the present value fallacy: The need for an alternative conceptual framework," The British Accounting Review, Elsevier, vol. 39(3), pages 211-225.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihaela DUMITRASCU & Radu Daniel LOGHIN, 2016. "A Study on the Relevance of the Goodwill Impairment in Context of Audit Partner`s Rotation," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(133), pages 1-88, January.
    2. Pier Luigi Marchini & Carlotta D'Este, 2015. "Comprehensive Income: which potential effects on firms? performance evaluation and users? decision process?," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(2), pages 55-94.
    3. repec:hur:ijaraf:v:5:y:2015:i:1:p:148-160 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li Yu (Colly) He & Sue Wright & Elaine Evans, 2018. "Is fair value information relevant to investment decision-making: Evidence from the Australian agricultural sector?," Australian Journal of Management, Australian School of Business, vol. 43(4), pages 555-574, November.
    2. Gwilliam, David & Jackson, Richard H.G., 2008. "Fair value in financial reporting: Problems and pitfalls in practice," Accounting forum, Elsevier, vol. 32(3), pages 240-259.
    3. Massimiliano Celli, 2016. "External VS. Internal Audit in the Accounting of Complex Contractual Instruments: A Survey on EU Firms," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(5), pages 1-22, April.
    4. Zhang, Ying & Andrew, Jane, 2014. "Financialisation and the Conceptual Framework," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(1), pages 17-26.
    5. Michael Bromwich & Richard Macve & Shyam Sunder, 2010. "Hicksian Income in the Conceptual Framework," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 348-376, September.
    6. Schaltegger, Stefan & Burritt, Roger L., 2010. "Sustainability accounting for companies: Catchphrase or decision support for business leaders?," Journal of World Business, Elsevier, vol. 45(4), pages 375-384, October.
    7. Carmen Giorgiana Bonaci & Adriana Tiron Tudor, 2011. "Fair Value Empirical Studies: An Overview On Acconting Research Literature," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-1.
    8. Argilés bosch, Josep M.a & Aliberch, Anna Sabata & Blandón, Josep García, 2012. "A Comparative Study of Difficulties in Accounting Preparation and Judgement in Agriculture Using Fair Value and Historical Cost for Biological Assets Valuation," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 109-142.
    9. Malgorzata Wegrzynska & Alina Nowotarska, 2021. "Measuring and Valuation of Biological Assets: A Research Study," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 331-345.
    10. Josep Ma. Argiles (UB) & Josep Garcia Bladon (IQS) & Teresa Monllau (UPF), 2009. "Fair value versus historic cost Valuation for Biological assets: Implications for the quality of financial information," Working Papers in Economics 215, Universitat de Barcelona. Espai de Recerca en Economia.
    11. Vladu Alina Beattrice, 2013. "FAIR VALUE MEASUREMENT IN AGRICULTURE AND THE POTENTIAL TO MISLEAD Abstract: Applying fair value measurement to tangible and intangible assets in agriculture cannot be risk free. Twofold reasons can b," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 95-98, October.
    12. Janni Grouleff Nielsen & Rainer Lueg & Dennis van Liempd, 2019. "Managing Multiple Logics: The Role of Performance Measurement Systems in Social Enterprises," Sustainability, MDPI, vol. 11(8), pages 1-23, April.
    13. Braun Eduard, 2019. "The Ecological Rationality of Historical Costs and Conservatism," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 9(1), pages 1-30, March.
    14. Toth Kornel, 2014. "The Effect Of Derivative Financial Instruments On Bank Risks, Relevance And Faithful Representation: Evidence From Banks In Hungary," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 698-706, July.
    15. Kaifala, Gabriel B. & Paisey, Catriona & Paisey, Nicholas J., 2021. "The UK pensions landscape – A critique of the role of accountants and accounting technologies in the treatment of social and societal risks," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 75(C).

    More about this item

    Keywords

    Fair value accounting; measurement techniques; valuation method;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:6:y:2012:i:3:p:93-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.