The impact of managerial discretion on fair value information in the Australian agricultural sector

He, L; Wright, S; Evans, E

The impact of managerial discretion on fair value information in the Australian agricultural sector

He, L Wright, S

Evans, E

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Publisher:: Wiley
Publication Type:: Journal Article
Citation:: Accounting and Finance, 2021, 61, (S1), pp. 1897-1930
Issue Date:: 2021-01-01

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Field	Value	Language
dc.contributor.author	He, L
dc.contributor.author	Wright, S https://orcid.org/0000-0001-8634-1428
dc.contributor.author	Evans, E
dc.date.accessioned	2021-12-23T05:18:24Z
dc.date.available	2021-12-23T05:18:24Z
dc.date.issued	2021-01-01
dc.identifier.citation	Accounting and Finance, 2021, 61, (S1), pp. 1897-1930
dc.identifier.issn	0810-5391
dc.identifier.issn	1467-629X
dc.identifier.uri	http://hdl.handle.net/10453/152491
dc.description.abstract	© 2020 Accounting and Finance Association of Australia and New Zealand This study examines the application of fair value measurement for biological assets and how managers exercise their discretion over fair value measurement to achieve desired earnings outcomes. Using Australian data, we find that managers report larger agricultural gains when the earnings target is not met. This phenomenon is more prominent when managers are provided with higher levels of discretion. Boards of directors appear to understand this strategy and distinguish unrealised agricultural earnings from other earnings when compensating managers. However, boards do not appear to intervene in managers’ choices of fair value estimates.
dc.language	English
dc.publisher	Wiley
dc.relation.ispartof	Accounting and Finance
dc.relation.isbasedon	10.1111/acfi.12647
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1402 Applied Economics, 1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment
dc.subject.classification	Accounting
dc.title	The impact of managerial discretion on fair value information in the Australian agricultural sector
dc.type	Journal Article
utslib.citation.volume	61
utslib.for	1402 Applied Economics
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access	*
pubs.consider-herdc	true
dc.date.updated	2021-12-23T05:18:23Z
pubs.issue	S1
pubs.publication-status	Published
pubs.volume	61
utslib.citation.issue	S1

Abstract:

© 2020 Accounting and Finance Association of Australia and New Zealand This study examines the application of fair value measurement for biological assets and how managers exercise their discretion over fair value measurement to achieve desired earnings outcomes. Using Australian data, we find that managers report larger agricultural gains when the earnings target is not met. This phenomenon is more prominent when managers are provided with higher levels of discretion. Boards of directors appear to understand this strategy and distinguish unrealised agricultural earnings from other earnings when compensating managers. However, boards do not appear to intervene in managers’ choices of fair value estimates.

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http://hdl.handle.net/10453/152491