The Comparison of Value Relevance of Assets Reporting in Traditional and Restructured Balance sheet based on IASB and FASB Exposure Draft

Document Type : Research Paper

Authors

1 PhD Student of Accounting, University of Isfahan

2 Faculty member/ University of Isfahan

3 Faculty member/University of Isfahan

Abstract

This study reviews The Exposure Draft provided by FASB and IASB about restructuring of financial statements, that is supposed to be the basis for amendments to International Financial Reporting Standards (IFRS). Therefore, the purpose of this research is to compare the value relevance of current and noncurrent assets disaggregated into operating and investing as well as the value relevance of aggregated current and noncurrent assets in traditional balance sheet, with the stock return.The study uses data from 144 firms listed in Tehran Stock Exchange for the years from 2002 to 2014. Also, the asset section of the firms' balance sheet is restructured based on FASB and IASB Exposure Draft. To test the hypotheses, the multivariate regression analysis based on pool data has been used. The results show that the disaggregation process of current, non-current and total asset have significant positive effects on value relevance of balance sheet items to stock return, as compared to the aggregated asset disclosure in traditional balance sheet format

Keywords

References

 
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History

  • Receive Date: 17 December 2016
  • Revise Date: 08 January 2019
  • Accept Date: 21 May 2017

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