Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 154

Full Length Research Paper

Fair value accounting: Perspective on stewardship function

Dusan Andrejcik
  • Dusan Andrejcik
  • Buckingham Business School, University of Buckingham, Buckingham MK 18 IEG, United Kingdom.
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Gurcharan Singh
  • Gurcharan Singh
  • Buckingham Business School, University of Buckingham, Buckingham MK 18 IEG, United Kingdom.
  • Google Scholar
Anwar Halari
  • Anwar Halari
  • Open University Business School, Open University, Milton Keynes MK 76 AA, United Kingdom.
  • Google Scholar


  •  Received: 10 July 2021
  •  Accepted: 15 September 2021
  •  Published: 31 October 2021

Abstract

This paper reviews the existing and emerging perspectives on fair value accounting (FVA) in the context of the stewardship function of financial reporting. This study draws on diverse research threads and theoretical notions to advance a comprehensive assessment of existing FVA research in the context of the trade-off between decision-usefulness and the stewardship objective. By conducting a narrative literature review, the authors identify two distinct domains of literature: FVA- a result of a conceptual shift in financial reporting; and FVA- an enhancement of decision-usefulness in general-purpose financial reporting. This study posits that FVA can be considered as an evolutionary, rather than revolutionary, development in financial reporting measurement which emerged from financialisation and globalisation of economies. It is further suggested that the ability of FVA to provide stewardship-relevant information may be reduced due to the emphasis it places on the provision of decision-useful information for investment purposes. Therefore, the authors call for a greater engagement between policy-setters and researchers when choosing conceptual underpinnings for financial measurement objectives.

 

Key words: Fair value accounting, stewardship function, decision usefulness, IFRS 13.