Fair-value pension accounting

• 成果类型: Article
• 署名作者: Hann, Rebecca N.; Heflin, Frank; Subramanayam, K. R.
• 署名单位: University of Southern California; State University System of Florida; Florida State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2007.04.001
• 发表日期: 2007
• 关键词: VALUE-RELEVANCE; investor sophistication; stock returns; Bond ratings; MARKET; performance; obligations; disclosure; EFFICIENCY; valuation

摘要

We compare the value and credit relevance of financial statements under fair-value and smoothing (SFAS-87) models of pension accounting. While fair-value improves the credit relevance of the balance sheet, it does not improve its value relevance. Further, fair-value impairs both the value and credit relevance of the income statement and the combined financial statements unless transitory gains and losses (G&L) are separated from more persistent income components. Overall, our results suggest there are no informational benefits to adopting a fair-value pension accounting model. (C) 2007 Elsevier B.V. All rights reserved.