Accountant and user perceptions of fair value accounting: evidence from Fiji

Devi, Joycelyn S. and Devi, Rajni and Kumar, Rashika S. and Taylor, Charlotte A. (2012) Accountant and user perceptions of fair value accounting: evidence from Fiji. Global Journal of Business Research, 6 (3). pp. 93-102. ISSN 1931-0277

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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.

Item Type:	Journal Article
Uncontrolled Keywords:	Fair value accounting, measurement techniques, valuation method
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance
Depositing User:	Unnamed user with email rashika.kumar@usp.ac.fj
Date Deposited:	01 May 2013 00:45
Last Modified:	20 Jul 2016 23:43
URI:	http://repository.usp.ac.fj/id/eprint/5703

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