publication . Preprint . 2015

Value-Relevance of Biological Assets under IFRS

Rute Gonçalves; Patrícia Lopes;
Open Access
  • Published: 01 Mar 2015
Using 389 firm-year observations of listed firms worldwide in 27 countries that adopted International Financial Reporting Standards (IFRS) until 2010, for the period 2011-2013, the purpose of this paper is to examine the value-relevance of fair value accounting of biological assets. In order to operationalize it as the book value’s ability to explain market equity value, this study adjusts the Ohlson model. The results support that recognized biological assets are value-relevant. After including the effect of the disclosure level of biological assets, the results show that biological assets are more value-relevant in firms that exhibit higher disclosure levels. ...
free text keywords: biological assets, fair value accounting, financial reporting, disclosure index, regulation, jel:M41
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