راهبرد مدیریت مالی (Mar 2024)
The Value Relevance of Fair Value of Marketable Securities Portfolio in the Investment Companies
Abstract
Despite the revision of Iran's Accounting Standard No.15 and the requirement of Standard No.42, fair value measurement, since the beginning of 1400, marketable investments in financial statements are generally identified at the lower of cost and net sales value.According to the disclosure requirements of the Securities and Exchange Organization, investment companies are required to disclose the current price of investments on the CODAL site at monthly intervals.The purpose of this study is to investigate the appropriate criteria for this important item of assets in investment companies.that's mean, it compares the current practice of fair value disclosure in the notes to the financial statements and CODAL against its recognition.This study is based on the relative and incremental value relevance of competing measures (cost and market value) from the point of view of measurement using linear regression of accounting variables on the stock price.Robust regression method was also used to test the robustness of the results.The time period is monthly from 2018/03/21 to 2022/04/30 and the statistical population is all investment companies that were accepted to the Tehran Stock Exchange market before 2018.Finally, according to the available information of 47 companies, the population has been limited to 2350 Company - month.The evidence of this study showed that the market value of the marketable investments portfolio has both a relative and incremental value relevance compared to its cost.The findings of the additional tests also showed that the investors had an appropriate reaction to the crisis by reducing the value relevance of the numbers related to the market value of the marketable securities portfolio.that's mean, at the time of crisis when the value of stocks in the investment portfolio of companies falls sharply, this decrease in the value of assets is reflected with a gentle slope in the stock price of the investing company.
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