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Article: Fair Value of Real Estate and Utility of Financial Statements of Construction Companies Author: Andrˆms Navarro-Galera, Marˆqa del Carmen Pˆmrez-Lˆupez, Lˆhzaro Rodrˆqguez-Ariza Start Page: 323 Abstract: Some international standards have proposed that the fair value approach should be used to evaluate real estate assets. The choice to use this method or another approach could influence the quality of the financial reports published in response to information demands by company stakeholders. In this study, we will examine whether fair value evaluation, in the real estate context, improves the utility of construction company financial reports. For this purpose, we have addressed a questionnaire to financial directors that concern the relevance, reliability and viability of this valuation criterion. Based on the opinion of the respondents, our results show that the fair value model would improve the usefulness of financial reports to evaluate company solvency, and would also improve the comparability, timeliness and understandability of such reports. |
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