Inventory valuation, company value, and the uncertainty principle

Catherine Whelan; Simone Kelly; Raymond McNamara; Jasper Verkleij

Inventory valuation, company value, and the uncertainty principle

Catherine Whelan, Simone Kelly, Raymond McNamara, Jasper Verkleij

Bond Business School

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

72 Downloads (Pure)

Abstract

One of the key elements to the operation of capital markets is information efficiency (Ball and Brown 1968). Both the IASB and the FASB frameworks emphasize decision usefulness,particularly to investors in capital markets, as the primary focus of general purpose financial statements. While theoretically, market values are determined by estimating discounted cash flows (Copeland, Weston et al. 2005; Brealey 2007), practical observations suggest a role for accounting information in the valuation process. Market information suggests that practitioners use the accounting performance measure “earnings” for firm valuation and determination of share prices.

Original language	English
Title of host publication	Proceedings of the 2011 AFAANZ Conference
Editors	S Cahan
Place of Publication	Melbourne
Publisher	Accounting and Finance Association of Australia and New Zealand
Number of pages	24
Publication status	Published - 2011
Event	Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference - Darwin, Darwin, Australia Duration: 3 Jul 2011 → 5 Jul 2011 http://www.afaanz.org/conferences

Conference

Conference	Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference
Abbreviated title	AFAANZ 2011
Country/Territory	Australia
City	Darwin
Period	3/07/11 → 5/07/11
Internet address	http://www.afaanz.org/conferences

Access to Document

Inventory valuation, company value, and the uncertainty principleFinal published version, 272 KBLicence: Unspecified

Cite this

@inproceedings{08958d60fd714c4fb8e76e763984be80,

title = "Inventory valuation, company value, and the uncertainty principle",

abstract = "One of the key elements to the operation of capital markets is information efficiency (Ball and Brown 1968). Both the IASB and the FASB frameworks emphasize decision usefulness,particularly to investors in capital markets, as the primary focus of general purpose financial statements. While theoretically, market values are determined by estimating discounted cash flows (Copeland, Weston et al. 2005; Brealey 2007), practical observations suggest a role for accounting information in the valuation process. Market information suggests that practitioners use the accounting performance measure “earnings” for firm valuation and determination of share prices.",

author = "Catherine Whelan and Simone Kelly and Raymond McNamara and Jasper Verkleij",

note = "{\textcopyright} Copyright Catherine Whelan, Simone Kelly, Ray McNamara & J. Verkleij, 201; Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference, AFAANZ 2011 ; Conference date: 03-07-2011 Through 05-07-2011",

year = "2011",

language = "English",

editor = "S Cahan",

booktitle = "Proceedings of the 2011 AFAANZ Conference",

publisher = "Accounting and Finance Association of Australia and New Zealand",

url = "http://www.afaanz.org/conferences",

}

Whelan, C, Kelly, S, McNamara, R & Verkleij, J 2011, Inventory valuation, company value, and the uncertainty principle. in S Cahan (ed.), Proceedings of the 2011 AFAANZ Conference . Accounting and Finance Association of Australia and New Zealand, Melbourne, Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference, Darwin, Australia, 3/07/11.

Inventory valuation, company value, and the uncertainty principle. / Whelan, Catherine; Kelly, Simone; McNamara, Raymond et al.
Proceedings of the 2011 AFAANZ Conference . ed. / S Cahan. Melbourne: Accounting and Finance Association of Australia and New Zealand, 2011.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

TY - GEN

T1 - Inventory valuation, company value, and the uncertainty principle

AU - Whelan, Catherine

AU - Kelly, Simone

AU - McNamara, Raymond

AU - Verkleij, Jasper

PY - 2011

Y1 - 2011

N2 - One of the key elements to the operation of capital markets is information efficiency (Ball and Brown 1968). Both the IASB and the FASB frameworks emphasize decision usefulness,particularly to investors in capital markets, as the primary focus of general purpose financial statements. While theoretically, market values are determined by estimating discounted cash flows (Copeland, Weston et al. 2005; Brealey 2007), practical observations suggest a role for accounting information in the valuation process. Market information suggests that practitioners use the accounting performance measure “earnings” for firm valuation and determination of share prices.

AB - One of the key elements to the operation of capital markets is information efficiency (Ball and Brown 1968). Both the IASB and the FASB frameworks emphasize decision usefulness,particularly to investors in capital markets, as the primary focus of general purpose financial statements. While theoretically, market values are determined by estimating discounted cash flows (Copeland, Weston et al. 2005; Brealey 2007), practical observations suggest a role for accounting information in the valuation process. Market information suggests that practitioners use the accounting performance measure “earnings” for firm valuation and determination of share prices.

M3 - Conference contribution

BT - Proceedings of the 2011 AFAANZ Conference

A2 - Cahan, S

PB - Accounting and Finance Association of Australia and New Zealand

CY - Melbourne

T2 - Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference

Y2 - 3 July 2011 through 5 July 2011

ER -

Inventory valuation, company value, and the uncertainty principle

Abstract

Conference

Access to Document

Fingerprint

Cite this