IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

An International Exploration of Financial Reporting Practices in the Real Estate Industry

Listed author(s):
  • Robert Edelstein


    (Haas School of Business, University of California at Berkeley, Berkeley, CA 94720)

  • Steve Fortin


    (Desautels Faculty of Management, McGill University, Montreal, QC H3A 1G5)

  • Desmond Tsang


    (Desautels Faculty of Management, McGill University, Montreal, QC H3A 1G5)

Registered author(s):

    The adoption of the new International Financial Reporting Standards (IFRS), by allowing the option of fair value accounting for real estate investment properties, has dramatically altered the landscape of financial reporting for real estate firms worldwide. In this exploratory study, by examining the financial statements and disclosures of 45 international real estate firms, we demonstrate that the implementation of IFRS has affected financial reporting practices in the real estate industry. We find that under the IFRS, companies place emphasis on market asset valuations, vis-a-vis alternative metrics for current performance. We also find that most real estate firms in our sample choose to report fair values for investment properties in their financial statements rather than the notes to the financial statements. Finally, there is a wide variation in firm disclosures with regards to the determinants of fair market values.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Full text
    Download Restriction: no

    Article provided by Asian Real Estate Society in its journal International Real Estate Review.

    Volume (Year): 15 (2012)
    Issue (Month): 3 ()
    Pages: 347-372

    in new window

    Handle: RePEc:ire:issued:v:15:n:03:2012:p:347-372
    Contact details of provider: Postal:
    Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA

    Web page:

    Order Information: Postal: Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
    Web: Email:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Aboody, David & Barth, Mary E. & Kasznik, Ron, 1999. "Revaluations of fixed assets and future firm performance: Evidence from the UK1," Journal of Accounting and Economics, Elsevier, vol. 26(1-3), pages 149-178, January.
    2. Danny Ben-Shahar & Yoram Margalioth & Eyal Sulganik, 2009. "The Straight-Line Depreciation is Wanted, Dead or Alive," Journal of Real Estate Research, American Real Estate Society, vol. 31(3), pages 351-370.
    3. repec:bla:joares:v:36:y:1998:i::p:199-233 is not listed on IDEAS
    4. Andrˆms Navarro-Galera & Marˆqa del Carmen Pˆmrez-Lˆupez & Lˆhzaro Rodrˆqguez-Ariza, 2010. "Fair Value of Real Estate and Utility of Financial Statements of Construction Companies," International Real Estate Review, Asian Real Estate Society, vol. 13(3), pages 323-350.
    5. Danny Ben-Shahar & Eyal Sulganik & Desmond Tsang, 2011. "Funds from Operations Versus Net Income: Examining the Dividend-Relevance of REIT Performance Measures," Journal of Real Estate Research, American Real Estate Society, vol. 33(3), pages 415-442.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ire:issued:v:15:n:03:2012:p:347-372. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRER Secretary Office/Webmaster)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.