Title :

Convergence in Motion: A Review of Fair Value Levels’ Relevance

Author(s) :

Filip, Andrei [Auteur]
Hammami, Ahmad [Auteur]
Huang, Zhongwei [Auteur]
Jeny, Anne [Auteur]
Lille économie management - UMR 9221 [LEM]
Magnan, Michel [Auteur]
Moldovan, Rucsandra [Auteur]

Journal title :

Accounting in Europe

Pages :

275-294

Publisher :

Taylor & Francis (Routledge)

Publication date :

2021-09-02

ISSN :

1744-9480

English keyword(s) :

Fair value hierarchy
Fair value measurement
Meta-analysis
Valuation process
IFRS 13
SFAS 157
ASC 820

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

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 ...
Show more >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.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL