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Accounting choice in measurement and comparability: an examination of the effect of the fair value option

dc.contributor.authorFontes, Joana C.
dc.contributor.authorPanaretou, Argyro
dc.contributor.authorShakespeare, Catherine
dc.date.accessioned2025-02-27T10:55:20Z
dc.date.available2025-02-27T10:55:20Z
dc.date.issued2025-02-17
dc.description.abstractThe choice between historical cost and fair value measurement is one of the most debated issues among accounting academics and practitioners. We use the election of the fair value option (FVO) to study the effects of entities’ measurement choices on accounting comparability. The FVO enables entities to use different measurement bases for similar assets and liabilities, raising questions about whether the FVO compromises or enhances comparability. Using a sample of US banks, we find that FVO elections increase comparability both across FVO electing banks and between FVO electing banks and banks that never elect the FVO but only if the FVO elections comply with the intent of the standard setters to remedy accounting mismatches. Overall our results suggest that banks elect the FVO to better present their economics, yielding higher comparability.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.doi10.1007/s11142-025-09869-5
dc.identifier.eid85218186898
dc.identifier.issn1380-6653
dc.identifier.urihttp://hdl.handle.net/10400.14/48335
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/pt_PT
dc.subjectBankspt_PT
dc.subjectComparabilitypt_PT
dc.subjectFair value optionpt_PT
dc.subjectFinancial instrumentspt_PT
dc.titleAccounting choice in measurement and comparability: an examination of the effect of the fair value optionpt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.titleReview of Accounting Studiespt_PT
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT

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