Browsing by Author "Bradbury, M"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Value Relevance of Control-based Consolidated Financial Statements
    (2015) Barcham, R; Bradbury, M
    The study examines whether the switch from ownership-based guidelines for control under SSAP-8 to the principles-based guidelines (power and benefits) of FRS-37 increased the value relevance of consolidated financial statements in New Zealand. The adoption of FRS-37 led to an increase in value relevance of consolidated assets and liabilities (at the 5 percent level). Only weak evidence was found to support the view that FRS-37 was not effective (less value relevant) for entities with a large number of subsidiaries (as a proxy for investment complexity) and associates are less value relevant. The is evidence that investors view non-controlling as a liability, which does not support its presentation as equity (under IFRS 10).