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Accountant And User Perceptions Of Fair Value Accounting: Evidence From Fiji

Author

Listed:
  • Rajni Devi
  • Joycelyn Devi
  • Rashika Kumar
  • Charlotte Taylor

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.

Suggested Citation

  • Rajni Devi & Joycelyn Devi & Rashika Kumar & Charlotte Taylor, 2012. "Accountant And User Perceptions Of Fair Value Accounting: Evidence From Fiji," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(3), pages 93-102.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:3:p:93-102
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    References listed on IDEAS

    as
    1. Rayman, R.A., 2007. "Fair value accounting and the present value fallacy: The need for an alternative conceptual framework," The British Accounting Review, Elsevier, vol. 39(3), pages 211-225.
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    Cited by:

    1. Mihaela DUMITRASCU & Radu Daniel LOGHIN, 2016. "A Study on the Relevance of the Goodwill Impairment in Context of Audit Partner`s Rotation," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(133), pages 1-88, January.
    2. Pier Luigi Marchini & Carlotta D'Este, 2015. "Comprehensive Income: which potential effects on firms? performance evaluation and users? decision process?," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(2), pages 55-94.
    3. repec:hur:ijaraf:v:5:y:2015:i:1:p:148-160 is not listed on IDEAS

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    More about this item

    Keywords

    Fair value accounting; measurement techniques; valuation method;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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