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The Value Relevance of Fair Value Disclosures in Australian Firms in the Extractive Industries


  • Mohamat Sabri Hassan

    () (School of Accounting, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia)

  • Majella Percy

    (School of Accountancy, Queensland University of Technology, Brisbane, Australia)

  • Jenny Stewart

    (Department of Accounting, Finance and Economics, Griffith Business School, Griffith University, Queensland, Australia)


We investigate whether fair value information is value relevant within Australian firms in the extractive industries. The Australian accounting standard on financial instruments AASB 139 Financial Instruments: Recognition and Measurement requires measurement of financial instruments based on fair values. This study provides evidence that net fair value information is value relevant. However, the significance of net fair value is limited to the recognised financial instruments and some settings. Further analysis provides evidence that the explanatory power of net fair value and the unrealised gain or loss beyond the book value and earnings valued at historical costs is very low. Classification-JEL:

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  • Mohamat Sabri Hassan & Majella Percy & Jenny Stewart, 2006. "The Value Relevance of Fair Value Disclosures in Australian Firms in the Extractive Industries," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 2(1), pages 41-61.
  • Handle: RePEc:usm:journl:aamjaf00201_41-61

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    References listed on IDEAS

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    5. Comerton-Forde, Carole & Rydge, James, 2006. "The current state of Asia-Pacific stock exchanges: A critical review of market design," Pacific-Basin Finance Journal, Elsevier, vol. 14(1), pages 1-32, January.
    6. Pantisa Pavabutr & Sukanya Prangwattananon, 2009. "Tick size change on the Stock Exchange of Thailand," Review of Quantitative Finance and Accounting, Springer, vol. 32(4), pages 351-371, May.
    7. Ahn, Hee-Joon & Cai, Jun & Chan, Kalok & Hamao, Yasushi, 2007. "Tick size change and liquidity provision on the Tokyo Stock Exchange," Journal of the Japanese and International Economies, Elsevier, vol. 21(2), pages 173-194, June.
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    Cited by:

    1. Carmen- Alexandra BALTARIU, 2015. "The Current State Of Knowledge In The Value Relevance Research Field," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 7, pages 13-20, April.
    2. Jacqueline Birt & Michaela Rankin & Chen L. Song, 2013. "Derivatives use and financial instrument disclosure in the extractives industry," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(1), pages 55-83, March.


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