Badenhorst, Wessel M.Brummer, Leon MarxDe Wet, Johannes H.v.H. (Johannes Hendrik van Heerden)2015-06-252015-06-252016-06Badenhorst, WM, Brummer, LM & De Wet, JH 2016, 'The value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates', Australian Accounting Review, vol. 26, no. 2, pp. 177-189.1035-6908 (print)1835-2561 (online)10.1111/auar.12089http://hdl.handle.net/2263/45774Equity accounting is a controversial accounting treatment. Although fair value measurement represents a potential alternative measurement base, information content may be lost under a pure fair value measurement approach. This study investigates the value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates, using a sample of the largest firms listed in South Africa, Australia and the United Kingdom. The main finding is that the alternative measurement bases are incrementally value-relevant during the sample period of 31 December 2005 to 31 December 2011, implying that equity investors do not blindly accept either measurement base. Rather, investors include their own assessment of the intrinsic value of an entity’s listed associates in their valuations.en© CPA Australia. This is the pre-peer reviewed version of the following article : The value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates, Australian Accounting Review, vol. 26, no. 2, pp. 177-189, 2016, doi : 10.1111/auar.12089. The definite version is available at : http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1835-2561Equity accountingFair valueMeasurementInvestments in associatesSDG-08: Decent work and economic growthEconomic and management sciences articles SDG-08Postprint Article