68,542 research outputs found

    THE FAIR VALUE – REPRESENTATION OF THE MARKET VALUE IN ACCOUNTING. TRENDS AND PERSPECTIVES IN ROMANIAN ACCOUNTING PRACTICE

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    The market value, as a method of measuring the right value, also provides the highest objectivity due to the fact that it is based on information exterior to the entity, impossible to influence in any way. For the fair value of a product to be equivalent to the market value, a prerequisite needs to be followed: the market must be perfect, namely organized and active. In this case, the evaluation’s type is market to market. In certain fields, the active’s market existence is clearly difficult (for instance for the derived products or specialized, unique assets etc). In such situations – imperfect market – we will valorize that specific good by calculating its fair value by using an evaluation technique, an alternative technique in the absence of a price set by the market. There are two possible approaches: the first one belongs to the analogy method; the second approach belongs to valuing an asset using the modeling technique also known as market to model. The method of determining the value of an asset by analogy or similarity is theoretically valid, but in practice this is difficult, since the notion of similar characteristics is often difficult to establish and prove. This article proposes a valuation of the market value concept based on Romanian realities - legal, accounting practices in that area, and taking into account the existing fiscal limitations.market value, fair value, comparison approach, the analogy method, identical or similar assets sales, the modeling technique Romania

    Philanthropy of Community Instrument 2: Measuring and Valuation of Assets (PMVA).

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    This is one of several instruments which have been developed to deepen the practice of grantmakers, using the lens of philanthropy of community (PoC). It is useful for measurement and validation of community assets

    Impairment of Assets or Impairment of Financial Information?

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    This paper begins with overviews of the Statements of Financial Accounting Standards (SFAS) No. 144 and No. 142 as they pertain to impairments. Subsequent to the overviews, a conceptual evaluation considers how the impairment standards are related to various components of the conceptual framework, including reliability, relevance, and various components within and related to these two characteristics. Incorporated into the discussion is SFAS No. 157 and current fair value measurements in accounting. Controversies surrounding SFAS No. 144 and No. 142 are discussed and companies that have incurred impairment losses or conduct impairment testing on a regular basis are presented. All components of this paper are directed to an analysis of the costs and benefits of impairment testing and the possible result of the trade-off

    Exploring the intellectual capital and financial capital interface: an artefact-based criteria approach to the recognition of ‘organisational’ assets

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    This article was submitted to and presented at the 32nd European Accounting Association Annual Conference.Design: Normative, conceptually based. Purpose: The paper presents asset recognition criteria based on the idea that an asset should be functional, separable and measurable and that financial recognition should be triggered by the recognition of an artefact. We apply these criteria to four organisational assets, that is, those intangible assets that are unlikely to be reported in the accounting domain. Findings: We do so in order to show how one may expand the basis on which assets can be reported financially to elements of intellectual capital as well as financial capital. Originality: The criteria have never been applied to organisational asset

    The measurement and modelling of commercial real estate performance

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    Digital curation: investment in an intangible asset

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    How does the market price pension accruals?

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    We use a cross-sectional valuation model that distinguishes between the operating and financial activities of the firm to examine the repercussions of three main alternative measures of pension expense. The GAAP Method recognizes a smoothed net pension expense, the NETCOST Method includes the excess of interest cost over the actual return on pension plan assets, if and only if this number is positive, and the FV Method substitutes the fair value in place of the smoothed pension expense. Three alternative fair value estimates of pension expense are examined: the first includes the expected return on plan assets and fair value other costs; the second includes the actual return on plan assets and net fair value other costs; the third includes the expected and the unexpected return on plan assets, along with net fair value other costs. Results from OLS regressions are consistent with the GAAP Method being relevant while the market appears to value the unexpected return included in the FV Method. Additional analyses from jack-knife (out-of-sample) regressions confirm the OLS findings. Further, we show that the multiples assigned to the alternative measures of pension expense differ based on the funding status of pension plans. The results are robust to various sensitivity checks

    Analysis of International Accounting Regulations with Regards to Fair Value

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    Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand. One of the coordinates of accounting globalization is the fair value based valuation system. This tendency arises from the contents of international accounting standards and from the progress of world-wide regulating practice. The economic and market events of the past years have highlighted the importance of fair value measurements used in financial statements and have emphasized the need for consistency and comparability in those measurements in financial statements prepared around the globe.fair value, harmonization, IASB, FASB, Accounting Directive, IFRS, FAS, Exposure Draft

    Valuing human resources: perceptions and practices in UK organisations.

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    Despite Government and academic interest in valuing human resources, there has been relatively little progress in reflecting the value of human resources in UK organisations. This research uses a survey questionnaire to identify perceptions and practices in the area of valuing human resources in three types of UK organizations; traditional companies, knowledge intensive companies and local authorities. The survey focuses on the importance of valuing human resources, current measurement practices, key barriers to the valuation of human resources and the progress expected in this field over five years in UK organisations. Although the majority of respondents identified that the measurement/valuation of human resources was important to their organization, only little or moderate progress in recognizing the worth of human resources in financial statements was expected. The main reasons for this were identified to be lack of understanding and support of the area by others in the organization, particularly senior management, lack of resources, uncertainty as to what information should be reported and lack of precision and reliability in current human resource measures. The research identified that there is more interest in the area from human resource professionals than accounting professionals and that valuation of human resources should be included in internal reports rather than reported externally. More research is now needed, both on conceptual models for valuing human resources within organizations and empirical research focusing on issues such as gaining commitment to valuing of human resources by senior management, the development of systems of valuing human resources, how systems to value employees, when developed, are implemented in organisations and the consequences, both intended and unintended of how the systems operate in practice
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