IDEAS home Printed from https://ideas.repec.org/a/taf/acceur/v18y2021i2p196-217.html
   My bibliography  Save this article

The Value Relevance of Fair Value Levels: Time Trends under IFRS and U.S. GAAP

Author

Listed:
  • Andrei Filip
  • Ahmad Hammami
  • Zhongwei Huang
  • Anne Jeny
  • Michel Magnan
  • Rucsandra Moldovan

Abstract

The IASB's post-implementation review of IFRS 13 Fair Value Measurement motivates our analysis of the evolution of the value relevance of fair value (FV) levels over time on banks that report under IFRS and U.S. GAAP. For both sets of standards, results provide evidence that is consistent with (1) an increase in value relevance across all three FV levels over time, and (2) a convergence of the value relevance of the three FV levels over time. However, FV levels exhibit systematically higher value relevance under U.S. GAAP compared to IFRS. Such gap has closed to some extent since the enactment of IFRS 13. This evolution is likely due to learning about FV accounting and changes in financial reporting regulations that increased disclosure requirements. These findings confirm the IASB's conclusions that FV levels’ disclosure is useful to users of financial statements, but also emphasizes preparers and investors’ learning over time.

Suggested Citation

  • Andrei Filip & Ahmad Hammami & Zhongwei Huang & Anne Jeny & Michel Magnan & Rucsandra Moldovan, 2021. "The Value Relevance of Fair Value Levels: Time Trends under IFRS and U.S. GAAP," Accounting in Europe, Taylor & Francis Journals, vol. 18(2), pages 196-217, May.
    • Handle: RePEc:taf:acceur:v:18:y:2021:i:2:p:196-217
    DOI: 10.1080/17449480.2021.1900581
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17449480.2021.1900581
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17449480.2021.1900581?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acceur:v:18:y:2021:i:2:p:196-217. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAIE20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.