With the advent of the economic crisis, fair value once again becomes a hot topic. This paper discusses the issues of fair value from three aspects including the meaning of fair value, its serious impacts and its inap...With the advent of the economic crisis, fair value once again becomes a hot topic. This paper discusses the issues of fair value from three aspects including the meaning of fair value, its serious impacts and its inapplicability in China. As for this point, this paper stress that the rub of the fair value is its inaccurate recognition elements which will inevitably lead to the inaccurate measurement. Finally, the paper puts forward the viewpoint that China should be careful enough to apply the fair value accounting.展开更多
This paper aims to examine whether or not the adoption of fair value accounting （FVA） has an effect on the level of information transparency and the degree of earnings management, to identify whether the legal insti...This paper aims to examine whether or not the adoption of fair value accounting （FVA） has an effect on the level of information transparency and the degree of earnings management, to identify whether the legal institutions have powers to explain those effects of the adoption of FVA, and to explore the relationship between the effects of the adoption of FVA and several specific characteristics of the banking industry. By investigating the banking sectors of four Asian countries/regions including China, Hong Kong, the Philippines, and Singapore which have adopted International Financial Reporting Standards （IFRS）, this paper finds that after the application of FVA, the estimated cost of equity of the sampled banks significantly decreases and the relationship between banks＇ loan loss provisions （LLP） and earnings before provisions and tax （EBPT） becomes irrelevant. The evidence supports the effects of FVA adoption on the enhancement of accounting quality. In addition, sound legal/extra-legal systems are closely linked to the degree of accounting quality and still have a strong influence on FVA.展开更多
文摘With the advent of the economic crisis, fair value once again becomes a hot topic. This paper discusses the issues of fair value from three aspects including the meaning of fair value, its serious impacts and its inapplicability in China. As for this point, this paper stress that the rub of the fair value is its inaccurate recognition elements which will inevitably lead to the inaccurate measurement. Finally, the paper puts forward the viewpoint that China should be careful enough to apply the fair value accounting.
文摘This paper aims to examine whether or not the adoption of fair value accounting （FVA） has an effect on the level of information transparency and the degree of earnings management, to identify whether the legal institutions have powers to explain those effects of the adoption of FVA, and to explore the relationship between the effects of the adoption of FVA and several specific characteristics of the banking industry. By investigating the banking sectors of four Asian countries/regions including China, Hong Kong, the Philippines, and Singapore which have adopted International Financial Reporting Standards （IFRS）, this paper finds that after the application of FVA, the estimated cost of equity of the sampled banks significantly decreases and the relationship between banks＇ loan loss provisions （LLP） and earnings before provisions and tax （EBPT） becomes irrelevant. The evidence supports the effects of FVA adoption on the enhancement of accounting quality. In addition, sound legal/extra-legal systems are closely linked to the degree of accounting quality and still have a strong influence on FVA.
