ACCOUNTING MANIPULATIONS RELATED TO FINANCIAL ASSETS

Speaking of Securitization Accounting , Tax , Regulatory and Other Developments Affecting Transfers and Servicing of Financial Assets

Who uses fair value accounting for non - financial assets after IFRS adoption ?

We examine whether and why companies prefer fair value to historical cost when they can choose between the two valuation methods. With the exception of investment property owned by real estate companies, historical cost by far dominates fair value in practice. Indeed, fair value accounting is not used for plant, equipment, and intangible assets. We find that companies using fair value accountin...

Defining Ecosystem Assets for Natural Capital Accounting

In natural capital accounting, ecosystems are assets that provide ecosystem services to people. Assets can be measured using both physical and monetary units. In the international System of Environmental-Economic Accounting, ecosystem assets are generally valued on the basis of the net present value of the expected flow of ecosystem services. In this paper we argue that several additional conce...

Are financial assets priced locally or globally?

We review the international finance literature to assess the extent to which international factors affect financial asset demands and prices. International asset pricing models with mean-variance investors predict that an asset’s risk premium depends on its covariance with the world market portfolio and, possibly, with exchange rate changes. The existing empirical evidence shows that a country’...

Accounting Defects, Financial Statement Credibility,

We would like to acknowledge helpful discussions with Robert Bowen and David Burgstahler. Existing equity valuation models are silent on the question of how changes in financial statement credibility alter the usefulness of accounting data for valuation purposes. 1 Reported cash flow, earnings and balance sheet data are either taken at face or they are adjusted to eliminate alleged deficiencies...