Analysis of Change in Present Value Measurements

24 Pages Posted: 20 Oct 2008

See all articles by John H. Bradshaw

John H. Bradshaw

Victoria University of Wellington - School of Accounting and Commercial Law

Bhagwan S. Khanna

Victoria University of Wellington - School of Accounting and Commercial Law

Melvin Roush

Pittsburg State University; Victoria University of Wellington - School of Accounting and Commercial Law

Tony van Zijl

Victoria University of Wellington - Faculty of Commerce and Administration

Date Written: 2005

Abstract

In recent years, the leading standard setters for financial reporting have shown an increasing preference for fair value measurement. However, present value is often the only acceptable method of estimating fair value and therefore the actual result of the swing to fair value is likely to be increased use of present value in financial reporting. This paper addresses the issue of interpretation of a change in present value between successive reporting dates and shows that the change can be analyzed by use of the familiar variance analysis framework widely used in management accounting.

Suggested Citation

Bradshaw, John H. and Khanna, Bhagwan S. and Roush, Melvin and van Zijl, Tony, Analysis of Change in Present Value Measurements (2005). Available at SSRN: https://ssrn.com/abstract=1286942 or http://dx.doi.org/10.2139/ssrn.1286942

John H. Bradshaw

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand

Bhagwan S. Khanna

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand

Melvin Roush

Pittsburg State University ( email )

1701 S. Broadway
Pittsburg, KS 66762
United States

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
64 4 471 5365 (Phone)
64 4 495 5076 (Fax)

Tony Van Zijl (Contact Author)

Victoria University of Wellington - Faculty of Commerce and Administration ( email )

RH 606, Pipitea Campus, 6th Floor, Rutherford Hous
23 Lambton Quay
Wellington
Australia

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