1、1 中文 2900 字 本科毕业 论文 （ 设计 ） 外 文 翻 译 外文题目 Value-relevance of presenting changes in fair value of investment properties in the income statement: evidence from Hong Kong
2、; 外文出处 Accounting and Business Research 外文作者 Stella So and Malcolm Smith 原文 ： Value-relevance of presentin
3、g changes in fair value of investment properties in the income statement: evidence from Hong Kong IAS 40 (2000) represents the first time that the IASB permits a fair value model for non-financial assets (IASCF, 2008c). Under the fair value model, investment properties are carried at fair values and
4、 changes in fair value, whether up or down, are included in the profit or loss for the period and presented in the income statements. Supporters of the fair value model believe that fair values give users of financial statements more useful information than other measures, such as depreciated cost,
5、and changes in fair value are inextricably linked as integral components of the financial performance of an investment property and are therefore presented in the income statements (IASCF, 2008c). Although IAS 40 (2000) permits entities to choose between a fair value model or a cost model, the Basis
6、 for Conclusions on IAS 40 (2000) states clearly that it is highly unlikely that a subsequent change from the fair value model to the cost model can be made on the grounds of more appropriate presentation (IASCF, 2008c). However, Penman (2007) does not entirely agree； he evaluates historical c
7、ost and fair value accounting from two perspectives-equity valuation and stewardship and 2 concludes that while fair value accounting is a plus at a conceptual level, the minuses add up with fair value implemented as exit price (whether estimated or observed in active markets) and the problems with
8、historical cost accounting remains unresolved. Singleton-Green (2007) summarises the problems of fair value accounting as: (1) the lack of active markets for most assets and liabilities, which means that most fair value measurements are estimates and are highly subjective and potentially unrel
9、iable； (2) costly information, especially for smaller companies； and (3) the recognition of profits based on fair values, which mean that unrealised profits or losses from changes in fair value are recognised, and result in greater volatility and unpredictability. This study focuses on the third iss
10、ue, the presentation of changes in fair value of investment properties, in the income statement versus the revaluation reserve. Empirical studies assessing the relevance and reliability of fair value accounting versus historical cost-based accounting focus on financial instruments, and the res
11、ults from these studies are generally mixed. Barth (1994) finds that, for a sample of US banks with data from 19711990, disclosed fair value estimates of investment securities provide significant incremental explanatory power for bank share prices beyond that provided by historic costs. Fair value g
12、ains and losses of investment securities (constructed from two annually disclosed fair value estimates) are, however, found to have no significant incremental explanatory power for annual returns (changes in share price), due to the increased measurement errors (Barth, 1994). Similar results are obt
13、ained in Barth et al. (1995), Barth et al. (1996), Eccher et al. (1996) and Nelson (1996), all using bank data. Results from Carroll et al. (2003) differ； instead of using bank data, they sample closed-end mutual funds which typically have investment securities (report-ed at fair values) comprising
14、virtually all their assets and with negligible liabilities and other assets. This is an advantage because the potential problem introduced by measuring some assets and liabilities at fair value but others at historical cost, is eliminated. Significant association between share prices and the fair va
15、lue of investment securities, as well as between share returns and fair value securities gains and losses are found. To examine whether differences in the reliability of the fair value of investment securities affect investors 3 assessments of the usefulness of the information, Carroll et al. (2003)
16、 examine the association between share prices and fair values across different fund types and find that in all cases, including those traded in thin markets, there is a significant association between the share prices and fair values. In contrast, Danbolt and Rees (2008), using UK data, report
17、 no support for full fair value accounting. While fair value income is considerably more value-relevant than historic cost income, the higher relevance disappears in the presence of changes in fair value accounting balance sheet values. Danbolt and Rees (2008) interpret their results as evidence of
18、the absence of an obvious advantage from adopting fair value income accounting if fair value balance sheet values are available to the user. Value-relevance research studies the association between fair value estimates and share prices or returns. Sloan (1999) comments that while this associat
19、ion provides evidence that investors find fair value estimates to be relevant, the inferences regarding reliability are indirect and limited by the fact that share prices reflect many factors other than the fair value estimates. Dietrich et al. (2001) subsequently use a direct approach to investigat
20、e the reliability of mandatory annual fair value appraisal estimates by chartered surveyors for UK investment properties and find that appraisal estimates understate actual selling prices but are considerably less biased and more accurate measures of selling price than respective historical costs. D
21、ietrich et al. (2001) also find that the reliability of appraisal estimates increases when monitored by external appraisers and Big Six auditors. The New Zealand (hereafter NZ) SSAP No. 17 Accounting for Investment Properties and Properties Intended for Sale (NZSA, 1989) previously allowed NZ
22、companies the choice of recognising unrealised gains or losses either in the income statement, or as movements in an investment property revaluation reserve, unless the total of the reserve was insufficient to cover a deficit, in which case the amount of deficit was to be charged in the income statement as part of operating results. The NZ equivalent of IAS 40 came into effect on 1 January 2005, resulting in the elimination of the choice of recognising unrealised gains in the revaluation reserve. Owusu-Ansah and Yeoh (2006) investigate the relative value-relevance of the two alternative
