Fair value disclosures and crash risk

In response to the public criticism of the inadequate disclosures mandated by SFAS No. 157, Fair Value Measurements, the FASB issued ASU (Accounting Standards Update) 2010–06, Improving Disclosures about Fair Value Measurements, and ASU 2011–04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements, in an effort to increase the reporting transparency. We examine whether the increased fair value disclosures required by these two updates effectively decrease crash risk, defined as the frequency of extreme negative stock returns. In support of the hypothesis, we find that increased transparency from these updates reduces crash risk among U.S. banking firms and that the reduction is greater in banks that have a higher level of Level 3 financial assets.     

美国公允价值计量准则的特征及启示

借鉴于美国公允价值的发展历程,公允价值的应用将会越来越广泛,我国计量属性由原来单一的历史成本计量逐渐过渡到由历史成本为基础,公允价值、重置成本、可变现净值、现值为依托的计量属性体系,其中公允价值是应用最为便捷的,为了更好的使用公允价值我国可以借鉴美国的一些经验来完善和补充它.文章主要阐述了美国公允价值计量的特征及其带来的启示.     

Cost-effectiveness of beef slaughterhouse decontamination measures in the Netherlands

The cost-effectiveness of seven decontamination measures to reduce Escherichia coli O157:H7 (VTEC)-contaminated carcass quarters in a typical Dutch dairy-beef industrial slaughterhouse were explored. To estimate the effectiveness a stochastic epidemiological-simulation model was used and to estimate the net cost a deterministic-economic model. The estimated baseline prevalence of daily-contaminated quarters was 9.16% (with a 90% confidence interval 4.40-13.10%). A reduction in the prevalence of VTEC-contaminated quarters to 2% using decontamination measures is achieved at costs of €0.20 to €0.50 per quarter, which is 16-40% of the net profit per carcass. A reduction to a prevalence of 1% will cost €0.50-€1.00 per quarter. Additional carcass trim and carcass steam-pasteurization are considered as the most cost-effective decontamination measures with costs of €16,340 and €20,243 per year to achieve a 1% prevalence reduction. Nevertheless, the lowest level of VTEC prevalence, less than 1%, is achieved using a set of measures that costs between €1.00 and €2.00 per quarter or, by implementing irradiation, which costs €4.65 per quarter.     

The shortcomings of fair-value accounting described in SFAS 157

Analysis of the examples given by the FASB to show how fair values, defined as exit prices, should be determined in specified circumstances is revealing. Such prices require determining what hypothetical companies might pay for assets, a costly procedure at best. Even though SFAS 157 specifies exit values, several examples employ values in use and entrance values. Although transaction costs must be excluded, they often are not. Fair valuation of non-financial assets, required in certain circumstances (e.g., business combinations), is particularly difficult to apply. Furthermore, exit values of such assets as work-in-process inventories and special-purpose machines, as defined by SFAS 157, often are zero or negative. Importantly, assets and liabilities restated at exit prices yield balance sheets and income statements that are of little, if any, value to investors in ongoing firms. Further, the examples presented show that fair values could be readily manipulated. Implementation of SFAS 157, therefore, is likely to be costly to investors and independent public accountants.     

基于美国金融危机的公允价值问题研究

眼下金融海啸正在疯狂地吞噬着华尔街,也在猛烈地撞击着全球会计人的心.曾被称为"代表未来计量方向"的公允价值,一夜之间成为众矢之的.第157号财务会计准则公告(SFAS157)提及的"公允价值",缘何为人诟病,在华尔街掀起轩然大波?它是危机真正的罪魁祸首,还是华尔街银行家们选择的一只代罪羔羊?"以市值计价"会计准则将何去何从?本文对此进行了探讨.     

非活跃市场环境下公允价值计量相关问题研究

公允价值并非只运用于活跃市场,非活跃市场是公允价值运用不可或缺的主要环境,活跃市场在很大程度上只是公允价值运用的特殊环境。美国FAS157《公允价值计量》没有系统考虑非活跃市场环境下诸多公允价值计量问题。深入研究非活跃市场环境下公允价值计量相关问题,并与基于活跃市场环境的公允价值计量框架进行对比和对接,有利于完善公允价值计量理论与方法体系,提高会计信息的决策有用性,加速实现我国与国际会计准则的持续全面趋同。     

The effect of additional guidance on fair value measurement and disclosure in illiquid or inactive markets

This paper examines fair value accounting – specifically, the application of FASB FSP 157-4 in the US. Data is analyzed from financial firms before and after FSP 157-4 was implemented to examine how this standard changed fair valuations and disclosures. We consider whether managers took advantage of the flexibility in the new standard by classifying their assets at level 3. We find that there is no significant change in the amount of assets that are transferred into level 3 after FSP 157-4 as compared to before. We also find a significant increase in the extent of disclosures as measured by word count. Fair value disclosures increased by an average of 52%. After further partitioning the sample based on size, we find that both main results hold for small and big firms in our additional sample. There is no evidence managers used the flexibility of the new standard to classify more financial assets at level 3; however, managers responded to the new standard with a significantly longer disclosure.     

基于美国金融危机的公允价值问题研究

目前金融海啸正在疯狂地吞噬着华尔街,也在猛烈地撞击着全球会计人的心。曾被称为代表未来计量方向的公允价值,一夜之间成为众矢之的。美国财务会计准则第157号(SFAS157)提及的公允价值缘何为人诟病,在华尔街掀起轩然大波?它是危机真正的罪魁祸首,还是华尔街银行家们选择的一只代罪羔羊?以市值计价会计准则将何去何从?本文对此进行了探讨。     

美国公允价值计量准则的完善及对我国的启示

本文介绍美国证券交易委员会和财务会计准则委员会对完善第157号财务会计准则《公允价值计量》的建议和举措,认为增加制定单独的《公允价值计量》会计准则是我国财政部目前为实施2009年9月发布的《中国企业会计准则与国际财务报告准则持续全面趋同的路线图》而采取的最重要的措施之一。我国应同时修订《企业会计准则——基本准则》,在制定公允价值计量准则时应遵循规则导向模式,在公允价值定义、公允价值层级及其信息的质量特征等方面借鉴并发展国际最新研究成果,实现会计准则主动趋同。     

对FSP FAS157-e的翻译及评析

本文对FASB今年3月17日发布的FSP FAS157-e进行翻译的基础上,对它的几层含义和带来的影响进行了评析并得出了几点启示。