Discussion of The effect of fair value accounting on the performance evaluation role of earnings

• 成果类型: Editorial Material
• 署名作者: Zhang, Ivy Xiying; Zhang, Yong
• 署名单位: University of California System; University of California Riverside; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.acceco.2020.101343
• 发表日期: 2020
• 关键词: gaap

摘要

Using the setting of IFRS adoption, DeFond, Hu, Hung, and Li (2020) examine the impact of fair value accounting on the usefulness of earnings in executive performance evaluation and compensation. In this discussion, we review the research design, discuss the implications of the findings, and provide suggestions for future research. In particular, DeFond et al.'s measure of the impact of fair value accounting may contain substantial measurement error, which calls for additional analyses. We believe that DeFond et al. address an important question motivated by recent developments in accounting standard setting. Yet, the broader question of whether and how IFRS fair value provisions affect the way compensation contracts are written and the usefulness of accounting information, not just that of earnings, has not been fully understood. (C) 2020 Elsevier B.V. All rights reserved.