Search results

The debate on the determinants of firm value is ongoing; and the increasing gap in the book‐to‐market ratio (Lev & Sougiannis 1999) has yet to be explained in the financial literature. This article contributes to the debate by examining whether intellectual capital measured using the value added intellectual coefficient (VAICTM) (Pulic 1998) contributes to the explanation of the book‐to‐market ratio. This study used Ohlson’s 1995 valuation model and JSE Securities Exchange (SA) (JSE) data in an attempt to identify whether the book value of assets, accounting (accrual) earnings and VAICTM explain the behaviour of South African share prices. The panel data least squares model results indicate a significant relationship between share prices three months after year end, and abnormal earnings, abnormal cash dividends, book value of assets, the capital employed coefficient, and the human capital coefficient.

Outlines the attempts made over the past few years to develop the financial services required by Kiev City council’s property management division to function as a privatization authority ‐ to develop, that is, what is referred to as the financial aspects of property management or, to be more precise, the accountancy, real estate, asset valuation and leasing services, which the property management division of Kiev City require to participate in the privatization, economic reform and process of liberalization the Ukraine has become subject to since the break‐up of the former USSR.

Outlines the attempts made over the past few years to develop the financial services required by Kiev City Council to function as a privatization authority. Looks at the privatization programme, the authority responsible for the transfer of ownership and the role the property management division of Kiev City plays in the economic reform and liberalization of Ukraine. Examines the financial aspects of property management, real estate registration, evaluation, land taxation, leasing agreements and the use of receipts from the transfer of ownership. Presents discussions which aim to reflect the developments currently taking place in Kiev City to transform the property management division into a structure that allows it to function as a privatization authority.

The purpose of this paper is to generate empirical evidence that facilitates our understanding of the market pricing for cash flows and accruals.

The study is empirical in nature, and utilizes and archival methodology.

The evidence in this study supports the primary hypothesis that the market valuations for the receivable accrual are greater than the valuations for other current accruals. Additionally, the results suggest that market valuations for cash flows are not monotonically greater than the valuations for accruals.

Overall, the results of this study suggest that inferences about the market's valuation of cash flows and accruals must consider multiple sources of variation in a concurrent fashion.

Models for equity valuation used by financial analysts, institutional investors, etc. should allow the various components of accruals to act independently.

This study contributes to the literature by synthesizing various aspects of capital markets research in accounting to enhance our understanding of the role that cash flows and accruals maintain for equity valuation.

Examines the various brand asset recognition methods used by the accounting profession, within their existing rules, to highlight, first, the restrictive nature of a brand asset’s current attachment to purchased goodwill and, second, the restrictive requirement for brand asset recognition to be derived solely from a “transaction or event”. Then examines the latest rule change, FRS10, to assess whether the recognition of brand assets is likely to remain restrictive in the future. It concurs with Murphy’s view that brand asset recognition on the balance still continues to be an accounting exercise which is “fudged”.

Considers the nature of local authority assets within the context of overall management objectives. Raises questions about the categorization of public assets and the way in which they are perceived by local authorities. Analyses research undertaken to examine the compilation of asset registers, the methods for the valuation of these assets, the appropriateness of such methods and the resulting explanations of value. Assesses the recently completed exercise undertaken by UK authorities to record their property asset stock and suggests, in the longer term, how such an exercise could be modified to incorporate more appropriate means of valuing some of its assets.

The purpose of this paper is to review the way in which auditing issues have been raised and addressed during the credit crunch and developing global financial crisis.

Analysis is based on a review of the academic auditing literature, regulatory and audit reports, together with papers from the financial press.

After highlighting the relative lack of media attention devoted to the external auditing function in the light of major corporate collapses, the paper considers what, contrastingly, is an active and ongoing series of responses to the current crisis on the part of auditing firms and the profession more generally. Through such analysis the paper explores a number of implications of the credit crunch for both auditing practice and research.

The paper is constrained in part by the rapidly unfolding nature of events, with important policy developments arising almost on a daily basis. The paper draws primarily on events up to the beginning of October 2008.

The paper has important messages for audit practice and research, including the technical capacities of external audits in the banking sector, the contributions of standard setting bodies and regulatory oversight, and the scope for enhanced dialogue between such parties and audit researchers.

The paper serves both to focus and stimulate analysis of the credit crunch on the audit profession. It demonstrates the complexity of contemporary practice and highlights the importance, especially from an educational perspective, of developing understanding of banking audit practice and associated regulatory interactions – including the presented possibilities both for research and enhanced academic‐practitioner dialogue.

This study aims to test empirically the validity of the accounting valuation model that is based on earnings and book values for loss‐reporting firms under a conservative accounting regime.

The empirical tests are performed by employing returns models on data derived from non‐financial firms listed on the Athens Stock Exchange for the period 1992‐2000.

The empirical results suggest that there is no unique concept of income, which is applicable, for valuation purposes, in all circumstances. Total income may be the appropriate income concept to use for the valuation of profit reporting firms but not for loss‐reporting ones; for loss‐reporting firms, ordinary income appears to be a more useful concept for valuation purposes. Extraordinary income was also found to be value relevant. Further, different versions of the accounting valuation model appear to be more relevant for different groups of firms (groups defined in terms of various firm characteristics, such as: size, growth opportunities and riskiness.

The study examines the informational content of the various earnings and loss items in the income statement and provides conclusions that are useful for standard setters, accounting policy makers and market participants.

It provides further evidence on the value relevance of losses, as opposed to that of earnings. It coincides with the development of a new project initiated by the International Accounting Standards Board, i.e. “Reporting Comprehensive Income”, concerning the content of the income statement. The analysis is carried in an accounting environment that adopts only historic cost accounting for the recording and measurement of assets and liabilities, revenues and expenses.

The paper aims to consider Red Book matters that have not previously been examined.

This paper examines the provisions in the RICS Appraisal and Valuation Standards (the Red Book) for property professionals involved in the use of the definition of “Existing use value for social housing”, and the “Tenanted market value” basis set out in guidelines for Scottish local authorities.

Using the experience in Scotland the paper considers some of the problems that can develop in practice and examines some of these problems.

The paper is intended to influence members of the profession in dealing with these problems and to contribute to the debate generally in terms of ensuring that these matters are considered by the RICS in reviewing its procedures.

The paper is specifically relevant to valuers required to use the Red Book provisions for valuing social housing and for those involved in existing use valuations.

To help facilities managers understand the origins and aims of the National Health Service (NHS) asset valuation and capital charging system, of the depreciated replacement cost (DRC) approach to valuation, its strengths and weaknesses and how under devolution the Scottish Health Service is adapting DRC assumptions to meet multiple policy priorities.

This paper examines the history of the system since inception in 1989, as an accounting and FM tool, subsequent debates on problems arising from DRC valuation methodology and recent developments in the Scottish NHS.

The original aim of the capital charging system in 1989 was to adapt a primarily financial accounting system of asset registers to create a dynamic management system to inform facility managers of the opportunity cost of their assets, encourage them to sell obsolete assets and drive modernisation of the estate. In Scotland much modernisation has now occurred. Other issues have emerged to preoccupy managers such as sustainability, preservation in use of historic buildings and concern not to overburden health bodies with an inherited older estate with onerous charges.

The paper presents new historic material identifying trends in the health service and professional thinking. It continues the debate between FM and valuation professionals, central government clients and researchers. The debate has implications for other specialised public sector estates such as prisons, courts, roads and defence and specialised private sector estates valued on DRC.

The paper explains recent developments in the UK's NHS asset valuation methodology in Scotland, and the historic roots of the capital charging system.