The value relevance of fair value disclosures in australian firms in the extractive industries

Mohamat Sabri Hassan, Majella Percy, Jenny Stewart

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

We investigate whether fair value information is value relevant within Australian firms in the extractive industries. The Australian accounting standard on financial instruments AASB 139 Financial Instruments: Recognition and Measurement requires measurement of financial instruments based on fair values. This study provides evidence that net fair value information is value relevant. However, the significance of net fair value is limited to the recognised financial instruments and some settings. Further analysis provides evidence that the explanatory power of net fair value and the unrealised gain or loss beyond the book value and earnings valued at historical costs is very low.

Original languageEnglish
Pages (from-to)41-61
Number of pages21
JournalAsian Academy of Management Journal of Accounting and Finance
Volume2
Issue number1
Publication statusPublished - 2006

Fingerprint

Extractive industries
Fair value
Disclosure
Value relevance
Financial instruments
Book value
Historical cost
Accounting standards

Keywords

  • Extractive industries
  • Fair value
  • Financial instruments
  • Incremental value
  • Value relevance

ASJC Scopus subject areas

  • Accounting
  • Finance

Cite this

The value relevance of fair value disclosures in australian firms in the extractive industries. / Hassan, Mohamat Sabri; Percy, Majella; Stewart, Jenny.

In: Asian Academy of Management Journal of Accounting and Finance, Vol. 2, No. 1, 2006, p. 41-61.

Research output: Contribution to journalArticle

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