Accountant and User Perceptions of Fair Value Accounting: Evidence from Fiji

Global Journal of Business Research, Vol. 6, No. 3, pp. 93-102, 2012

10 Pages Posted: 5 Jan 2012

See all articles by Rajni Devi

Rajni Devi

affiliation not provided to SSRN

Joycelyn Devi

The University of the South Pacific

Rashika Kumar

University of the South Pacific

Charlotte Taylor

affiliation not provided to SSRN

Date Written: 2012

Abstract

This paper through use of proxies for users and preparers of financial reports, finds the definition and understanding of ‘fair value accounting’, and identifies how it is measured (for shares and property investments) in Fiji. The paper also studies benefits and limitations of the concept, examines its impact on financial reporting roles, determines appropriate alternatives of this method and forecasts its prominence and endurance in Fiji. The paper concludes that users and preparers of financial reports have similar understanding of fair value accounting. Some measurement techniques identified were the use of active markets, independent valuers and referrals to cost. Some benefits identified were better disclosure and information that is more relevant. Proxies also identified limitations of the method in terms of costs of valuation, training and hiring of professionals, and the application of subjective judgment. The proxies predict prominence of fair value accounting in the long run.

Keywords: Fair value accounting, measurement techniques, valuation method

JEL Classification: M41

Suggested Citation

Devi, Rajni and Devi, Joycelyn and Kumar, Rashika and Taylor, Charlotte, Accountant and User Perceptions of Fair Value Accounting: Evidence from Fiji (2012). Global Journal of Business Research, Vol. 6, No. 3, pp. 93-102, 2012, Available at SSRN: https://ssrn.com/abstract=1957299

Rajni Devi (Contact Author)

affiliation not provided to SSRN ( email )

Joycelyn Devi

The University of the South Pacific ( email )

Laucala Campus

Rashika Kumar

University of the South Pacific ( email )

Laucala Campus

Charlotte Taylor

affiliation not provided to SSRN ( email )

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