Does Fair Value Measurement European Practice Provide Satisfactory Information

Ongoing changes in international and US financial reporting systems have engendered pressing measurement issues, mainly related to the use of fair value. Fair Value Measurements (FVM) is a subject of debate for both academics and practitioners. Theoretical research by Bushman and Smith (2001), Moreover, Martin et.al (2006) Hitz (2007) has been relatively circumspect about the appropriateness of FVM for accounting purpose. FVM of assets for which no liquid market exists has stimulated debate in a group of professions like accounting, auditing and appraisal but also is a hot topic from regulators and investors point of view. Two solutions have been proposed: a) using independent experts and b) development of the standards and guidelines by practitionersí associations. In European Union we expect a common practice and similar knowledge in fair value measurement of real estate properties. Our study involves an analysis of reevaluation practice and reevaluation results of the most important listed entities on the European Markets: Austrian Stock Exchange, Bolsas y Mercados Espanoles, Borsa Italia , Bucharest Stock Exchange, Bulgarian Stock Exchange, Euronext Paris, Frankfurt Stock Exchange, London Stock Exchange etc.