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This study aims to examine whether accounting knowledge is associated with a decision maker's tendency to ignore value added information in wealth measurement and distribution decisions.

A between‐subjects laboratory experiment was employed. Subjects prepared accounting reports that measured and distributed an entity's wealth based upon given accounting data. Accounting knowledge was measured as: a discrete variable by classifying subjects into high‐, low‐ and no‐accounting knowledge groups, and a continuous variable by classifying subjects on the number of accounting courses completed.

Findings provide empirical evidence that high levels of accounting knowledge interferes with a decision maker's ability to incorporate value added information (versus accounting profit) in wealth measurement and distribution decisions.

This experiment used subjects from the USA where the production and disclosure of a value added report is not mandated. The results should be tested in a country where the statement of value added is routinely produced, disclosed and audited.

This study shows the dysfunctional effect of accounting knowledge which appears to hinder performance in wealth measurement and distribution decisions.

This is the first attempt to explain why decision makers may ignore value added information in wealth measurement tasks and distribution decisions by focusing on the role of knowledge structures.

The application of proper measurement to a company generating products, services, cash flow and reputation largely from intellectual capital (IC) assets is examined. The particular focus is to measure the organisation so that the contributions of intangibles to the business are measured in their own right. If the measurements are feasible in practice (they are), they will render the tangible as well as the intangible assets of a company to be managed explicitly. Then the contributions of the intangibles to cash flow become measurable, and thence on to estimates of business value, and shareholder value. Shows that the process view of an organisation deconstructs the “classical” structure of IC categories and formulations, and rearranges them in a form whose state and process variables are observable, measurable, and properly dimensioned for a multidimensional measuring space. Ends with a demonstration of the method applied to a hotel organisation that exemplifies many of the problems of measuring and optimising IC assets.

In many countries today there is a debate on how to improve accounting to recognise also the non‐material value of companies. As a contribution to this debate, the Swedish Public Relations Association has initiated a project to develop the know‐how of how a company's profits and value can increase through investments in information, communications and relationships. The project applies also to the public sector and other organisations.

The measurement of non-financial assets that are held for their service potential rather than for a financial return can be challenging in the public sector. In some cases, the information is not available about the historical cost for the initial measurement and there is not an active market neither that could allow inferring a value for those non-financial assets. In response to this problem, this chapter analyses the newly developed measurement base current operational value (COV) to measure assets in the public sector. This measurement base is part of the proposals in Exposure Draft (ED) 76 – Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements, and ED 77 – Measurement. This chapter was developed using evidence obtained through participant observation to the IPSASB meetings from the authors and the desk analysis of the comment letters (CLs) to the ED 76 and ED 77. The findings from this study reveal that comparability is a major concern of the stakeholders. The CLs also highlighted the need for further guidance on a number of issues and suggested the way forward for the future standard-setting process that address the concerns identified in the proposed COV.

The purpose of this paper is to use a systematic model for detecting misfit between the garment and the target group.

Using an empirical–analytical methodology, the systematic model was tested. The input data were run through the model to generate the output data, which were analysed, including basic statistics. The purpose of the analysis was to detect misfit and improve the garment measurement chart. This procedure was repeated until a clear result was reached.

The result of this study is an optimised garment measurement chart, which considers the garment’s ease, different sizes/proportions in relation to a target group. The results show that it is possible to use a systematic model to define the shortcomings of a garment´s range of sizes and proportions.

Further studies are needed to verify the results of the theoretical garment fit and their values in relation to real garment fit.

If the systematic model is implemented to improve the theoretical garment fit, this may have effects on the available garment sizes and its proportions, resulting in increased theoretical garment fit for the target group.

The paper presents a systematic model for detecting and eliminating theoretical fitting; the model includes both garment ease allowance and defined points of misfit.

This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether using fair value method or the historical cost method on biological asset provides different financial reporting quality.

This study uses data from 38 agricultural companies that are members of the Roundtable on Sustainable Palm Oil. The annual reports of 38 companies from the Palm Oil Growers over a five-year period starting from 2011 to 2014 are analysed.

This study shows that companies using historical cost measurement produce less reliable and less relevant information compared to the companies that are using fair value measurement.

The results in this study imply that the use of fair value measurement improves the quality of financial information.

This study supports IASB’s justification of developing IAS 41 as the principle-based standard that better represents the financial information related to biological asset and subsequently lead to good accountability and harmonisation practices.

This study provides evidence on the best measurement to be used in agriculture activities using a larger sample size of few countries. In addition, this study contributes to the existing literature on the effect of accounting methods on financial reporting quality.

Consequent on the widespread of fair value (FV) accounting with the coming into effect of International Financial Reporting Standard (IFRS) 13, this study investigated the post-implementation challenges of FV measurement from the perspective of auditors in Nigeria.

Data collection was through a structured-questionnaire administered on auditors from diverse audit firm backgrounds in terms of size, international affiliation and global presence. Statistical techniques such as cluster analysis, factor analysis and ANOVA were applied to analyse data obtained from 277 respondents.

It was observed that the severest challenge of FV measurement bothers on the paucity of information for valuation of items. The magnitude of the challenges of applying FV measurement in various industry sectors appears similar. Although audit firm attributes affect perception on the challenges, there is concurrence among auditors that manipulation of values of assets/liabilities with no market price during estimation, leveraging on non-availability of market information on assets/liabilities by managers to manipulate financial statements, inappropriateness/non-compliance of valuation methods with IFRS 13, and low level of awareness among preparers of financial reports are notable post-implementation challenges of FV measurement.

Considering that the adoption of IFRS 13 impliedly places responsibilities on countries applying the standard to develop institutional structures that facilitate the valuation of items using FV measurement, it seems the establishment of such apparatus may be a sine qua non for fully realising the socio-economic benefits of applying FV accounting.

The study contributes to knowledge by exposing the practical challenges of FV measurement and accounting estimates typical of a developing country that has fully implemented international accounting standards. Moreover, findings from this study could be compared with the result of investigations conducted in other jurisdictions to gain a deeper and wider insight into the challenges of FV measurement with a view to proffering solutions to the post-implementation challenges of IFRS 13.

This paper aims to investigate the extent to which different prices within the bid-ask spread are used for fair value measurements and evaluate the potential consequences thereof.

The paper investigates different Level 1 fair value measurements of exchange-traded funds’ (ETFs) equity investments. Using descriptive methods, it compares actual and stated fair value measurement policies. In addition, comparative value relevance of these measurements is investigated in regression analysis.

Most fair value measurements are based on closing prices, but stated accounting policies and actual measurements frequently differ. Results also show that the bid-close spread of underlying investments is value-relevant in determining the bid-close spreads of ETFs themselves.

Findings are specific to unleveraged ETFs, the sample country and sample period used and only apply to investments in listed equities. Conclusions from this study may assist in predicting market perceptions of the risk of listed equity portfolios.

This paper sheds light on the practical impact of the recent change in fair value measurement guidance.

This study provides evidence on the size of the bid-ask spread of actual investment portfolios and its potential impact. It shows that bid-close spreads of underlying investments are used to price the bid-close spreads of ETFs themselves and that stated and actual accounting policies often differ. Findings imply that standard-setters might be influenced by actual accounting practices.

This paper aims to explore whether fair value Levels 1 and 2 measurements are more value relevant than Level 3 fair value measurements in a less-active market. Specifically, this research addresses two objectives. Firstly, it examines the value relevance of fair value measures for each disclosure level of fair value. Secondly, it assesses the impact of corporate governance on the value relevance of less observable fair value disclosures (Levels 2 and 3).

Drawing insights from agency theorising, this research adopts a quantitative approach (regression analysis) that investigates data from a less active financial market (South Africa).

Contrary to agency theory suppositions, the results show that investors in a less active market value management inputs more than market (more transparent) information. The authors also observe that investors pay limited interest to corporate governance structures when pricing fair value measurement, implying that they rely on factors beyond corporate governance mechanisms.

The authors’ findings offer useful evidence to standard setters and preparers of financial information. While the International Accounting Standard Board suggests that investors value transparent financial information, the data shows that investors in less-active markets value management’s inputs more than those of the market.

The aim of this study is to determine the variation of the different oil analysis instruments in terms of standard deviation and CV‐values, when measuring samples of fully formulated hydraulic and gear oils taken from working systems.

In this investigation, two different spectrometric techniques, inductively coupled plasma‐optical emission spectrometers (ICP‐OES) and rotating disk electrode‐optical emission spectrometers (RDE‐OES), have been studied to determine the instruments' precision of measurement and ability to measure the absolute level of contamination. The study was based on a series of measurements using artificial contamination mixed with oil.

The ICP has better precision of measurement of the two instruments, but cannot predict the absolute values of contamination when oil samples are only treated by organic solvent dilution if the samples include large or dense particles. It is therefore not too good, with the sample pre‐treatment method used, at detecting wear processes that produce dense/large particles, such as pitting failure. For instance, microwave‐assisted acid digestion could be used for sample pre‐treating to obtain accurate results in that case. It should, however, be able to detect wear mechanisms that produce small particles such as abrasive wear in any case. The ICP has a repeatability value of r=3 percent and a reproducibility value of R=12 percent for contamination levels of between 50 and 400 ppm and r=0.6  and R=2 ppm, respectively, at values below 50 ppm. The RDE cannot predict the absolute value of contamination if this includes large or dense particles if proper sample pre‐treatment is not used. It is therefore not good at detecting wear mechanisms that produces dense/large particles (if the oil samples are not pre‐treated properly) such as pitting but should be able to detect abrasive wear and similar processes that produce small particles in any case. The RDE's precision of measurement is not as good as the ICP, with a reproducibility variation of R=r=25 percent for contamination levels between 20 and 500 ppm and R=r=6 ppm for contamination level below 20 ppm.

Only the effects from lubricating oils are studied.

This study will significantly increase the industrial knowledge concerning measurement precision in particle contamination measurement systems.

No similar study is found.