Relevance of supplementary fair value disclosures under market uncertainty: effects on audit fees and investors’ pricing
Relevance of supplementary fair value disclosures under market uncertainty: effects on audit fees and investors’ pricing
复制标题
市场不确定性下补充公允价值披露的相关性：对审计费用和投资者定价的影响
DOI：
10.1108/maj-07-2021-3263
复制
发表时间：
2022
影响因子：
2.9
通讯作者：
H. Kabir
中科院分区：
文献类型：
--
作者：
Laura Mehnaz;A. Rahman;H. Kabir
目的
由于新冠疫情大流行造成市场不确定性，对代表性真实性以及公允价值 (FV) 估计相关性的担忧可能会加剧。因此，本文旨在研究补充披露的相关性，通过研究在2020年不确定的市场条件下补充披露对审计费用和投资者对公允价值调整的估值的影响，以提高公允价值估计的代表性真实性。
设计/方法论/途径
样本包括澳大利亚房地产公司。作者根据 IFRS 13 公允价值计量下与第 3 级 FV 相关的补充披露制定了加权和未加权披露指数。作者根据这些指数衡量了 2018 年至 2020 年样本公司的披露水平，并确定了其对审计费用和投资性房地产 FV 调整的市场价值的影响。
研究结果
作者发现，房地产公司在 2020 年增加了补充披露 FV。作者记录了补充披露与审计费用之间的负相关关系，尽管作者发现疫情期间披露对审计费用没有增量影响。此外，作者发现，在2020年市场不确定性期间，投资者对公允价值调整的定价随着披露的增加而增加，而在不确定性之前的时期，其定价影响并不显着。
原创性/价值
研究结果加深了人们对第三级投资物业补充披露在减轻审计师感知的审计风险以及在低迷的市场环境中忠实代表投资者的担忧方面的作用的理解。
Purpose
Concerns relating to the representational faithfulness and, consequently, the relevance of fair value (FV) estimates are likely to be heightened in the wake of market uncertainty caused by the COVID pandemic. Therefore, this paper aims to study the relevance of supplementary disclosures intended to improve the representational faithfulness of FV estimates by examining their impacts on audit fees and investors’ valuation of FV adjustments in the uncertain market condition of 2020.
Design/methodology/approach
The sample is comprising Australian real estate firms. The authors develop both weighted and unweighted disclosure indices based on supplementary disclosures related to Level 3 FVs under IFRS 13 Fair Value Measurement. The authors measure the levels of disclosure by the sample firms based on these indices from 2018 to 2020 and ascertain their effects on audit fees and the market value of FV adjustments on investment properties.
Findings
The authors find that real estate firms increased supplementary FV disclosures during 2020. The authors document a negative association between supplementary disclosures and audit fees, although the authors find no incremental impact of disclosures on audit fees during the pandemic. Additionally, the authors find that investors’ pricing of FV adjustments increased with the increase in disclosures during the market uncertainty of 2020, while in the pre-uncertainty period, their pricing influence was not significant.
Originality/value
The findings extend the understanding of the role of supplementary disclosures on Level 3 investment properties in mitigating the perceived audit risk for auditors and the faithful representation concerns for investors in a distressed market environment.