Valuation Implications of FAS 159 Reported Gains and Losses from Fair Value Accounting for Liabilities

Kevin Ow Yong

Universitas Indonesia Conferences, International Accounting Conference - 2017

Kevin Ow Yong

Last modified: 2017-07-06

Abstract

This study examines the economic implications of fair value liability gains and losses arising from the adoption of SFAS 159. Consistent witht he notion that gains and losses contain value-relevant information, we find a positive correspondence between a firm's FAS 159 fair value liability gains and losses and current period stock returns.

Keywords

Fair value accounting, FAS 159 liability gains and losses, value relevance, market efficiency

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