European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Fair Value

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State (Published)

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies.  The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Keywords: Fair Value, Financial Reporting Quality., fair value measurement, financial reporting system

The Extent of Compliance with the Disclosure Requirements for Fair Value Measurement (IFRS-13): A Study on the Annual Reports of Palestinian Corporations (Published)

This is an exploratory study designed to investigate the extent of compliance with the requirements fair value measurement disclosures in the annual reports of the 48 corporates that were listed on the Palestine Exchange (PEX) in 2014, by firstly sketching a guide of best practices and examining the relationship between the disclosure requirements for fair value measurement and the variables which may determine. In order to achieve the objective of our study, we have developed and utilized a disclosure score called unweighted fair value disclosure index (FVDI) to measure the extent of disclosure made by companies in corporate annual reports, and then using a statistical program to run the Correlations test, and Analysis of variance test. This study reports significant differences in levels of disclosures on fair value measurements, as measured by the mean values of the fair value disclosure index in Palestine. The findings show that, there is correlation between the disclosure requirements for fair value measurement and the explanatory variables (the size of the firm, auditor’s type), also there are differences in the level of disclosure requirements for fair value measurement of the firms due to the kind of economic sector. However, that the level of disclosure requirements for fair value measurement evidence a statistically did not significant association with the profitability of the firms.

Keywords: Annual Report, Disclosure, Fair Value, IFRS-13, Palestine Exchange., Unweighted Fair Value Disclosure Index

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