Financial reporting quality: is fair value a plus or a minus?

By Stephen H. Penman. 2007

452 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/84640f1a7647fdf505696ba9a0f888a7b9af06e2

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Citations in the corpus

Implications for GAAP from an Analysis of Positive Research in Accounting (2010, background): “28 Penman (2007) discusses why the income statement is the primary vehicle for conveying information relevant for valuation, and not the balance sheet.”
IFRS fair value measurement and accounting policy choice in the United Kingdom and Australia (2011, background): “Fair value measurement of financial assets has been strongly opposed by some financial statement preparers, who claim that such measurements are unreliable and introduce excessive volatility (Beresford, 1998; Penman, 2007).”
The tone of business model disclosure: an impression management analysis of the integrated reports (2015, background): “The growing attention of regulators and practitioners to the narrative sections of corporate reporting led to the realisation that discussing the ‘‘BM’’ is also a ‘‘disclosure issue’’ and not only a measurement one: BM is considered as a 1 The pros and cons of fair value measurements and alternative”
Accounting, Organizing, and Economizing: Connecting Accounting Research and Organization Theory (2013, unknown): “the virtues of historical cost accounting (Penman, 2007), there was also a strong lobby for measurement conventions which might better represent the underlying economics.”
Did Fair-Value Accounting Contribute to the Financial Crisis? (2010, unknown): “If the entity does not intend to sell and is unlikely to be required to do so, only the credit loss is recognized in the income statement. fair value, even if technically they are often reported at historical cost (for example, Nissim and Penman, 2007; SEC, 2008a).”
Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View (2008, methodology): “is given in a recent paper by Penman (2007), which uses the example of valuing the Coca-Cola Company to show how cost-based earnings numbers can be used effectively in valuation.”
How did Financial Reporting Contribute to the Financial Crisis? (2010, background): “Further, it has been suggested that some other measure, for example, modified historical cost, is more decision-useful (Penman, 2007).”
Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading (2015, background): “The theoretical literature (see, for example, Allen and Carletti (2008), Plantin, Sapra and Shin (2008), and Sapra (2008)) argues that mark-to-market (MTM), or fair value, accounting leads to the forced selling of assets by financial institutions during times of market stress, resulting in a downwar”