The Use of Fair Value and Historical Cost Accounting for Investment Properties in China
This paper examines the use of fair value accounting for investment properties by 96 randomly selected Chinese listed companies’ year-ending 2008 annual reports. Half the sampled companies use fair value while half use historical cost, both methods being allowable under International Financial Repor...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
University of Wollongong, School of Accounting and Finance
2014
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| Online Access: | http://hdl.handle.net/20.500.11937/9629 |
| _version_ | 1848746004740833280 |
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| author | Taplin, Ross Yuan, Wei Brown, Alistair |
| author_facet | Taplin, Ross Yuan, Wei Brown, Alistair |
| author_sort | Taplin, Ross |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper examines the use of fair value accounting for investment properties by 96 randomly selected Chinese listed companies’ year-ending 2008 annual reports. Half the sampled companies use fair value while half use historical cost, both methods being allowable under International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS). This represents the lowest possible level of comparability (or harmony) when there are only two choices of method. A combination of T indices to summarise the level of comparability and logistic regression reveals that companies with an international influence (listed on international stock exchanges and/or with international operations) are more likely to use fair value. Furthermore, there is evidence that companies with above average volatility in earnings are more likely to use fair value than historical cost. The consequences for domestic and international harmony for regulators and investors is discussed in the context of the opening of Chinese markets to international investment. |
| first_indexed | 2025-11-14T06:26:22Z |
| format | Journal Article |
| id | curtin-20.500.11937-9629 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:26:22Z |
| publishDate | 2014 |
| publisher | University of Wollongong, School of Accounting and Finance |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-96292017-09-13T16:01:59Z The Use of Fair Value and Historical Cost Accounting for Investment Properties in China Taplin, Ross Yuan, Wei Brown, Alistair investment properties fair value China accounting policy choice This paper examines the use of fair value accounting for investment properties by 96 randomly selected Chinese listed companies’ year-ending 2008 annual reports. Half the sampled companies use fair value while half use historical cost, both methods being allowable under International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS). This represents the lowest possible level of comparability (or harmony) when there are only two choices of method. A combination of T indices to summarise the level of comparability and logistic regression reveals that companies with an international influence (listed on international stock exchanges and/or with international operations) are more likely to use fair value. Furthermore, there is evidence that companies with above average volatility in earnings are more likely to use fair value than historical cost. The consequences for domestic and international harmony for regulators and investors is discussed in the context of the opening of Chinese markets to international investment. 2014 Journal Article http://hdl.handle.net/20.500.11937/9629 10.14453/aabfj.v8i1.6 University of Wollongong, School of Accounting and Finance fulltext |
| spellingShingle | investment properties fair value China accounting policy choice Taplin, Ross Yuan, Wei Brown, Alistair The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title | The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title_full | The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title_fullStr | The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title_full_unstemmed | The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title_short | The Use of Fair Value and Historical Cost Accounting for Investment Properties in China |
| title_sort | use of fair value and historical cost accounting for investment properties in china |
| topic | investment properties fair value China accounting policy choice |
| url | http://hdl.handle.net/20.500.11937/9629 |