Veronika Ilsjan () (School of Economics and Business Administration, Tallinn University of Technology) Kaia Kask () (School of Economics and Business Administration, University of Tartu)
Abstract
During the past few years there have been many changes in financial reporting rules in EU countries. One significant change from the real estate point of view has taken place in balance sheet, where property investment account is switched to the asset side of the balance sheet, separate from the property, plant and equipment. Since 2005, all companies listed in the stock market have the obligation to apply International Accounting Standards/International Financial Reporting Standards (IFRS) in their everyday practice. At the same time, more and more researchers have pointed to the problem of valuation accuracy and to the uncertainty of the valuation product. The aim of the paper is to explore practical problems in implementing the income approach in the valuation for financial reporting purposes in Estonia. To achieve the aim of the paper, the authors conducted a survey, sending out a comprehensive questionnaire to all certified general appraisers (GA). The survey findings show that the valuation for accounting purposes is topical mainly in major cities in Estonia. The valuers’ behaviour refers to overconfidence in their actions together with above-average self-esteem, which is not supported by actual survey results. However, one of the main reasons here is that some theoretical regulations in standards are too general and need some specification to harmonise appraisers’ behaviour in practice.
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Publisher Info
Paper provided by School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number
132.
Length: 18 Date of creation: 2005 Date of revision: Publication status: Published in Working Papers in Economics, School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Volume 16, Pages 73-90 Handle: RePEc:ttu:wpaper:132
Note: This research was conducted with support from the Estonian Science Foundation (project No. 5286). Contact details of provider: Postal: Kopli tn. 101, 11712 Tallinn Phone: +(372)620 3535 Fax: +(372)620 3946 Email: Web page: http://majandus.ttu.ee More information through EDIRC
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Find related papers by JEL classification: G2 - Financial Economics - - Financial Institutions and Services M4 - Business Administration and Business Economics; Marketing; Accounting - - Accounting
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