Title
Inventory valuation, company value, and the uncertainty principle
Date of this Version
7-3-2011
Document Type
Conference Paper
Abstract
Extract:
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.
This document has been peer reviewed.
Publication Details
Published Version.
Whelan, C., Kelly, S., McNamara, R., & Verkleij, J. (2011). Inventory valuation, company value, and the uncertainty principle. Paper presented at the 2011 Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference, Darwin, Australia.
Access the conference website.
2011 HERDC submission. FoR code: 150101
© Copyright Catherine Whelan, Simone Kelly, Ray McNamara & J. Verkleij, 201