Abstract

DE VICENTE-LAMA, Marta; MOLINA-SANCHEZ, Horacio  and  RAMIREZ-SOBRINO, Jesús. Real Estate Investments: The Accounting Choice Fair Value Versus Cost in Spanish Listed Groups. Cuad. Contab. [online]. 2013, vol.14, n.34, pp.25-51. ISSN 0123-1472.

The present paper analyses the factors determining the election of accounting criteria allowed by the International Financial Reporting Standards (IFRS) 40, Real Estate Investment. In short, a research on two essential characteristics of financial information: relevance and reliability. Our empirical results are consistent with the importance of the real estate-directed business in listed groups that opt for the fair value model. Additionally, results show that the larger the increments in the fair value of real estate investments, the smaller the incentives to choose the fair value model. Lastly, results evidence that the choice of accounting criteria is related to the auditor of the yearly accounts.

Keywords : NIC/NIIF; bienes raíces; Accounting Choice; Fair Value; IRFS; Real Estate Investment; IRFS 40; International accounting standards; fair value; economic value; real estate investment; investments; real property.

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