Value relevance of alternative methods of accounting for actuarial gains and losses
Autor(a) principal: | |
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Data de Publicação: | 2008 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/24557 |
Resumo: | The adoption of IAS 19: Employee benefits (2004) provided managers with an important accounting choice affecting the time and placement of actuarial gains and losses recognition. IAS 19 enables a choice between three major accounting methods related to the recognition of actuarial gains and losses of defined benefit plans: profit or loss method, equity recognition method and corridor method. The objective of this paper is to compare the ability of the three alternative methods for recognising actuarial gains and losses to reflect companies’ value. We manually collect information about the accounting method of recognising actuarial gains and losses adopted by 91 European companies listed in EURONEXT100, in 2005, 2006 and 2007. We applied regression analysis to investigate the value relevance of financial information under equity recognition method, profit or loss method and corridor method. Findings suggest that the recognition of all actuarial gains and losses in equity best reflects the market’s valuation of actuarial gains and losses. |
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Value relevance of alternative methods of accounting for actuarial gains and lossesActuarial Gains and LosseCorridorEquityDefined Benefit PlansThe adoption of IAS 19: Employee benefits (2004) provided managers with an important accounting choice affecting the time and placement of actuarial gains and losses recognition. IAS 19 enables a choice between three major accounting methods related to the recognition of actuarial gains and losses of defined benefit plans: profit or loss method, equity recognition method and corridor method. The objective of this paper is to compare the ability of the three alternative methods for recognising actuarial gains and losses to reflect companies’ value. We manually collect information about the accounting method of recognising actuarial gains and losses adopted by 91 European companies listed in EURONEXT100, in 2005, 2006 and 2007. We applied regression analysis to investigate the value relevance of financial information under equity recognition method, profit or loss method and corridor method. Findings suggest that the recognition of all actuarial gains and losses in equity best reflects the market’s valuation of actuarial gains and losses.Elsevier - SSRNRepositório da Universidade de LisboaMorais, Ana2022-06-17T09:26:17Z20082008-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/24557engMorais, Ana. (2008). "Value relevance of alternative methods of accounting for actuarial gains and losses." Available at SSRN 1308526 - 2008.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:54:11Zoai:www.repository.utl.pt:10400.5/24557Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:08:34.566897Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Value relevance of alternative methods of accounting for actuarial gains and losses |
title |
Value relevance of alternative methods of accounting for actuarial gains and losses |
spellingShingle |
Value relevance of alternative methods of accounting for actuarial gains and losses Morais, Ana Actuarial Gains and Losse Corridor Equity Defined Benefit Plans |
title_short |
Value relevance of alternative methods of accounting for actuarial gains and losses |
title_full |
Value relevance of alternative methods of accounting for actuarial gains and losses |
title_fullStr |
Value relevance of alternative methods of accounting for actuarial gains and losses |
title_full_unstemmed |
Value relevance of alternative methods of accounting for actuarial gains and losses |
title_sort |
Value relevance of alternative methods of accounting for actuarial gains and losses |
author |
Morais, Ana |
author_facet |
Morais, Ana |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Morais, Ana |
dc.subject.por.fl_str_mv |
Actuarial Gains and Losse Corridor Equity Defined Benefit Plans |
topic |
Actuarial Gains and Losse Corridor Equity Defined Benefit Plans |
description |
The adoption of IAS 19: Employee benefits (2004) provided managers with an important accounting choice affecting the time and placement of actuarial gains and losses recognition. IAS 19 enables a choice between three major accounting methods related to the recognition of actuarial gains and losses of defined benefit plans: profit or loss method, equity recognition method and corridor method. The objective of this paper is to compare the ability of the three alternative methods for recognising actuarial gains and losses to reflect companies’ value. We manually collect information about the accounting method of recognising actuarial gains and losses adopted by 91 European companies listed in EURONEXT100, in 2005, 2006 and 2007. We applied regression analysis to investigate the value relevance of financial information under equity recognition method, profit or loss method and corridor method. Findings suggest that the recognition of all actuarial gains and losses in equity best reflects the market’s valuation of actuarial gains and losses. |
publishDate |
2008 |
dc.date.none.fl_str_mv |
2008 2008-01-01T00:00:00Z 2022-06-17T09:26:17Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/24557 |
url |
http://hdl.handle.net/10400.5/24557 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Morais, Ana. (2008). "Value relevance of alternative methods of accounting for actuarial gains and losses." Available at SSRN 1308526 - 2008. |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Elsevier - SSRN |
publisher.none.fl_str_mv |
Elsevier - SSRN |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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