• myGriffith
    • Staff portal
    • Contact Us⌄
      • Future student enquiries 1800 677 728
      • Current student enquiries 1800 154 055
      • International enquiries +61 7 3735 6425
      • General enquiries 07 3735 7111
      • Online enquiries
      • Staff phonebook
    View Item 
    •   Home
    • Griffith Theses
    • Theses - Higher Degree by Research
    • View Item
    • Home
    • Griffith Theses
    • Theses - Higher Degree by Research
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

  • All of Griffith Research Online
    • Communities & Collections
    • Authors
    • By Issue Date
    • Titles
  • This Collection
    • Authors
    • By Issue Date
    • Titles
  • Statistics

  • Most Popular Items
  • Statistics by Country
  • Most Popular Authors
  • Support

  • Contact us
  • FAQs
  • Admin login

  • Login
  • Determinants and Consequences of Fair Value Measurements: International Evidence

    Thumbnail
    View/Open
    Yao, Daifei_thesis_redacted.pdf (2.948Mb)
    Author(s)
    Yao, DaiFei
    Primary Supervisor
    Percy, Majella
    Other Supervisors
    Stewart, Jennifer
    Hu, Fang
    Year published
    2016
    Metadata
    Show full item record
    Abstract
    A major feature of International Financial Reporting Standards (IFRS) is the use of fair value accounting for financial assets and liabilities. IFRS 7 requires reporting entities to disclose fair values based on a ‘Three-Level’ hierarchy in order to provide financial statement users with useful information about valuations, methodologies and the uncertainty associated with fair value measurements. Level 1 and Level 2 measurements include observable and indirectly observable inputs such as quoted prices of identical or comparable assets or liabilities from active markets. However, Level 3 measurements include unobservable ...
    View more >
    A major feature of International Financial Reporting Standards (IFRS) is the use of fair value accounting for financial assets and liabilities. IFRS 7 requires reporting entities to disclose fair values based on a ‘Three-Level’ hierarchy in order to provide financial statement users with useful information about valuations, methodologies and the uncertainty associated with fair value measurements. Level 1 and Level 2 measurements include observable and indirectly observable inputs such as quoted prices of identical or comparable assets or liabilities from active markets. However, Level 3 measurements include unobservable inputs computed by using price models or discounted cash flow methodologies or other information reflecting the reporting entity’s own assumptions and judgments. Research results generally confirm that managers use the discretion provided under fair value accounting opportunistically to increase firm performance and cash flows (Chong et al., 2012; Fiechter and Meyer, 2010; Henry, 2009), to smooth earnings volatility (Barth et al., 1995; Hodder et al., 2006; Li and Sloan, 2015), to meet analysts’ forecasts (Song, 2008) and to increase management compensation (Ramanna and Watts, 2009; Dechow et al., 2010; Shalev et al., 2013; Livne et al., 2011). Barth and Taylor (2010) call for more research to investigate the role of discretion in fair value estimates. Using the language of the fair value measurement hierarchy, Level 3 inputs are discretionary in nature. However, the incentive of bankers to use Level 3 inputs remains an empirical question.
    View less >
    Thesis Type
    Thesis (PhD Doctorate)
    Degree Program
    Doctor of Philosophy (PhD)
    School
    Griffith Busines School
    DOI
    https://doi.org/10.25904/1912/2204
    Copyright Statement
    The author owns the copyright in this thesis, unless stated otherwise.
    Subject
    International Financial Reporting Standards (IFRS)
    Fair value accounting
    Fair value measurement hierarchy
    Publication URI
    http://hdl.handle.net/10072/367159
    Collection
    • Theses - Higher Degree by Research

    Footer

    Disclaimer

    • Privacy policy
    • Copyright matters
    • CRICOS Provider - 00233E
    • TEQSA: PRV12076

    Tagline

    • Gold Coast
    • Logan
    • Brisbane - Queensland, Australia
    First Peoples of Australia
    • Aboriginal
    • Torres Strait Islander