A Standard setter’s framework for selecting between fair value and historical cost measurement attributes: a basis for discussion of “Does fair value accounting for nonfinancial assets pass the market test?”

Thomas J. Linsmeier ()
Additional contact information
Thomas J. Linsmeier: Financial Accounting Standards Board (FASB)

Review of Accounting Studies, 2013, vol. 18, issue 3, No 7, 776-782

Abstract: Abstract This paper describes an income-statement-focused framework for selecting between between the fair value and historical cost measurement attributes that differs from the balance-sheet-focused relevance versus reliability tradeoff perspective that is common to most academic research. This income-statement-focused framework is then applied to the Christensen and Nikolaev setting in Rev Account Stud 18(3), (2013) to suggest that most of the study’s findings are not surprising and can be explained by differences in the income-relevance of fair value and historical cost measures for nonfinancial assets rather than issues with the reliability of fair value measurements, which is the perspective taken by the authors. The paper closes by suggesting additional research on the use of fair value and historical cost measures for nonfinancial assets that would be most relevant to current standard-setting activities of the Financial Accounting Standards Board.

Keywords: Fair value; Historical cost; Nonfinancial assets; FASB (search for similar items in EconPapers)
JEL-codes: M4 M41 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-013-9238-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reaccs:v:18:y:2013:i:3:d:10.1007_s11142-013-9238-7

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-013-9238-7

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().