The value-relevance of disclosed summarised financial information of listed associates
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Title
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The value-relevance of disclosed summarised financial information of listed associates
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Description
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While prior research considers limited elements of the summarised financial informationreported for equity accounted associates under IAS 28, it does not address the collectiveor incremental value-relevance of these disclosures. Therefore, this study investigates theincremental value-relevance of all required elements of disclosed summarised financialinformation for listed associates, and controls for reported fair values. Findings suggestthat individual elements of these summarised disclosures are sometimes incrementallyvalue-relevant, but that elements have the greatest incremental value-relevance as a group.These findings suggest that investors value a firm’s investments in listed associates at a self-developed intrinsic value, rather than using the market value (or fair value) of that associatedirectly. Therefore, underlying accounting information of listed associates remains value-relevant, even when alternative market-based valuations are available.
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http://www.journals.elsevier.com/journal-of-international-accounting-auditing-and-taxation
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2016-03-31
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hb2015
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Creator
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Badenhorst, Wessel M.
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Brummer, Leon Marx
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De Wet, Johannes H.v.H. (Johannes Hendrik van Heerden)
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Date
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2015-06-25T08:58:10Z
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2015-06-25T08:58:10Z
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2015-03
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Type
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Postprint Article
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Format
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application/pdf
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Identifier
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Badenhorst, WM, Brummer, LM & De Wet, JH 2015, 'The value-relevance of disclosed summarised financial information of listed associates', Journal of International Accounting, Auditing and Taxation, vol. 24, pp. 1-12.
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1061-9518 (print)
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1879-1603 (online)
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10.1016/j.intaccaudtax.2015.02.002
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http://hdl.handle.net/2263/45780
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Language
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en
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Rights
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© 2015 Elsevier Inc. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Journal of International Accounting, Auditing and Taxation. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Accounting, Auditing and Taxation, vol. 24, pp. 1-12, 2015. doi :10.1016/j.intaccaudtax.2015.02.002