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.
|Title of host publication||Proceedings of the 2011 AFAANZ Conference|
|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
|Conference||Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference|
|Abbreviated title||AFAANZ 2011|
|Period||3/07/11 → 5/07/11|
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.