The value-relevance of fair value measurement for inventories

Badenhorst, Wessel M.; Von Well, Rieka

The value-relevance of fair value measurement for inventories

dc.contributor.author	Badenhorst, Wessel M.
dc.contributor.author	Von Well, Rieka
dc.contributor.email	wessel.badenhorst@up.ac.za	en_US
dc.date.accessioned	2023-02-24T07:19:06Z
dc.date.available	2023-02-24T07:19:06Z
dc.date.issued	2023-06
dc.description	DATA AVAILABILTY STATEMENT : The data that support the findings of this study are available from Refinitiv. Restrictions apply to the availability of these data, which were used under licence for this study. The existence of the data that support the findings of this study can be verified at https://doi.org/10.25403/UPresearchdata.19845619. However, the underlying data are only available from the authors with the permission of Refinitiv.	en_US
dc.description.abstract	The objective of this paper is to determine if fair value measurement for inventories is value-relevant. Inventories are measured at historical cost and investors will have to estimate the fair value for themselves. For a sample of firms listed in the UK and reporting from 2009 to 2018, multivariate regression results show that the historical cost component of inventories on the balance sheet is value-relevant, but that the fair value component is not. By contrast, both historical cost earnings and changes in the fair value of inventories are value-relevant. Results therefore imply that investors need both historical cost earnings and fair value movements to make decisions. By extension, fair value measurements complement, rather than replace, historical cost information.	en_US
dc.description.department	Accounting	en_US
dc.description.librarian	hj2023	en_US
dc.description.uri	https://onlinelibrary.wiley.com/journal/18352561	en_US
dc.identifier.citation	Badenhorst, W.M. & Von Well, R. 2023, 'The value-relevance of fair value measurement for inventories', Australian Accounting Review, vol. 33, no. 2, pp. 135-159, doi : 10.1111/auar.12382.	en_US
dc.identifier.issn	1035-6908 (print)
dc.identifier.issn	1835-2561 (online)
dc.identifier.other	10.1111/auar.12382
dc.identifier.uri	https://repository.up.ac.za/handle/2263/89807
dc.language.iso	en	en_US
dc.publisher	Wiley	en_US
dc.rights	© 2022 The Authors. Australian Accounting Review published by John Wiley & Sons Australia, Ltd on behalf of CPA Australia. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License.	en_US
dc.subject	Fair value measurement	en_US
dc.subject	Inventory	en_US
dc.subject	Value-relevant	en_US
dc.title	The value-relevance of fair value measurement for inventories	en_US
dc.type	Article	en_US