The impact of managerial discretion on fair value information in the Australian agricultural sector
- Publication Type:
- Journal Article
- Accounting and Finance, 2021, 61, (S1), pp. 1897-1930
- Issue Date:
|Accounting Finance - 2020 - He - The impact of managerial discretion on fair value information in the Australian.pdf||Published version||357.78 kB|
Copyright Clearance Process
- Recently Added
- In Progress
- Closed Access
This item is closed access and not available.
© 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.
Please use this identifier to cite or link to this item: