Working paper
Investment Professionals' Asset Measurement Preferences
SSRN
04/25/2023
DOI: 10.2139/ssrn.4417343
Abstract
Academic research provides mixed claims and evidence regarding the situations under which different asset measurement methods aid investment decisions. Surprisingly, evidence of actual resource providers’ views on this issue is sparse. We survey 528 and interview 13 investment professionals to provide evidence of their preferences among four common measurement methods and how these preferences vary when considering different assets, situations, and financial statements. Our results provide new insights to the literature including investors’ support for a mixed-method measurement model, how investors would benefit from multiple measures for the same asset at the same time, how disaggregation on the income statement can accommodate preferences for different balance sheet and income statement information, and investors’ informed, overall preference for more assets measured using a market- or company-based measure of value. Accordingly, our findings suggest that financial statement users have more relevant information when accounting standards use different measurement methods for different types of assets, provide multiple measurement methods for each asset in each reporting period, and separately provide relevant balance sheet amounts and earnings information, such as by using Other Comprehensive Income.
Details
- Title: Subtitle
- Investment Professionals' Asset Measurement Preferences
- Creators
- Spencer B AndersonMichael T DurneyShannon GaravagliaKurt H Gee
- Resource Type
- Working paper
- DOI
- 10.2139/ssrn.4417343
- Publisher
- SSRN
- Number of pages
- 70 pages
- Alternative title
- Professional Investors' Asset Measurement Preferences
- Language
- English
- Date posted
- 04/25/2023
- Date updated
- 12/28/2023
- Academic Unit
- Accounting
- Record Identifier
- 9984580316702771
Metrics
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