 Fair value measurement capabilities, disclosure, and the perceived reliability of fair value estimates: A discussion of Bhat and Ryan (2015)Ryan P. McDonough and Catherine M. Shakespeare Accounting, Organizations and Society, 2015, vol. 46, issue C, 96-99 Abstract: Selecting an appropriate measurement basis for financial reporting is a fundamental and contentious accounting policy issue. While many argue that fair value is the most relevant measurement basis for financial reporting, other observers express concerns about the reliability (or “faithful representation”), and thus the usefulness, of fair value measurements. Bhat and Ryan (2015) consider the role of risk management technologies—in particular, market and credit risk modeling—in the estimation of fair values. In light of our discussion of Bhat and Ryan’s study, we argue that future research should aim to extend our understanding of the fair value estimation process and the factors that explain variation in the reliability of fair values as well as the channels through which investors learn about fair value measurement reliability. Keywords: Fair value measurement; Risk modeling; Market risk; Credit risk; Value relevance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:aosoci:v:46:y:2015:i:c:p:96-99 DOI: 10.1016/j.aos.2015.05.003 Access Statistics for this article Accounting, Organizations and Society is currently edited by Christopher Chapman More articles in Accounting, Organizations and Society from Elsevier |
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