The reliability of investment property fair value estimates

• 成果类型: Article
• 署名作者: Dietrich, JR; Harris, MS; Muller, KA III
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University System of Ohio; Ohio State University; Syracuse University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• 发表日期: 2000
• 关键词: intangible assets; Share prices

摘要

We investigate the reliability of mandatory annual fair Value estimates for UK investment property. We find that appraisal estimates understate actual selling prices and are considerably less biased and more accurate measures of selling price than respective historical costs. Investigations of managerial discretion over fair value reporting reveal that managers select among permissible accounting methods to report higher earnings, time asset sales to smooth reported earnings changes, smooth reported net asset changes and boost fair Values prior to raising new debt. Finally, we find that the reliability of appraisal estimates increases when monitored by external appraisers and Big 6 auditors. (C) 2001 Elsevier Science B.V. All rights reserved.