LA REPERCUSIÓN DEL VALOR RAZONABLE DE LOS BIENES INMUEBLES EN LA UTILIDAD DE LOS ESTADOS FINANCIEROS: UNA NOTA DE INVESTIGACIÓN THE INCIDENCE OF THE FAIR VALUE OF REAL ESTATE IN THE USEFULNESS OF FINANCIAL STATEMENTS: A RESEARCH NOTE

The option in the recent Spanish regulation for fair value over historical cost, as the preferred measurement basis for some assets, has raised some controversy. This paper studies the effects on accounting information relevance and reliability of fair value accounting for investment properties. The...

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Bibliographic Details
Published inRevista de contabilidad Vol. 12; no. 1; p. 141
Main Authors Galera, Andrés Navarro, López, María del Carmen Peréz
Format Journal Article
LanguageSpanish
Published Madrid ASEPUC (Associacion Espanola de Profesores Universitarios de Contabilidad) 01.01.2009
Subjects
Accounting
Fair value
Financial reporting
Financial statements
Real estate
Studies
Spain
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Summary:The option in the recent Spanish regulation for fair value over historical cost, as the preferred measurement basis for some assets, has raised some controversy. This paper studies the effects on accounting information relevance and reliability of fair value accounting for investment properties. The empirical study is based on a questionnaire based survey of the perceptions of 151 Spanish accountants in the building industry about the usefulness and reliability of fair value accounting. The analysis of results allows us to conclude that accountants perceive that the usefulness of financial statements increases when investment property is valued on a fair value basis, compared with a historical cost basis. However, respondents conceive fair value accounting as less objective and verifiable. We have also observed that firm size may influence the opinion of the impact of fair value on the relevance and reliability of financial statements.
ISSN:1138-4891