Please use this identifier to cite or link to this item:
Title: Property assets fair value accounting under uncertainty
Authors: Tsamis, Anastasios
Liapis, Konstantinos J.
Keywords: Fair value -- Accounting
Monte Carlo method
PERT (Network analysis)
Real property -- Finance
Financial statements -- Standards
Accounting -- Standards
Issue Date: 2014
Publisher: University of Piraeus. International Strategic Management Association
Citation: Tsamis, A., & Liapis, K. (2014). Property assets fair value accounting under uncertainty. European Research Studies Journal, 17(4), 35-54.
Abstract: Accounting fairness refers mostly to the fair presentation, and therefore, measurement or valuation of an element recognized in the entity’s financial statements. In accounting and finance, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. Applying different accounting and valuation methods across firms or countries makes financial statements incomparable to each other. The research objects of the paper are: a literature view of IFRS2 and US GAAP3 principles and accounting standards for fixed assets; a critical perspective of the used accounting frameworks, providing comparison for each framework and each portfolio; the incorporation of uncertainty into the WLC4 methodology for the valuation and management of real property assets. The methodology of WLC with the NPV5 technique of a property asset, are used. These methods are incorporated into a decision-making mathematical model using the PERT probability distribution function for the input variables. The model is applied to a typical property asset (an office building as a part of a company’s fixed assets portfolio) in order to explore the significance of impacts from changes in structured variables by using the Monte Carlo Simulation. After the above procedure a unique fair value accounting model is founded on the dynamic integration of WLC fundamental concepts and the widely used appraisal measures for property assets with quantitative risk analysis to address the endemic in the property assets uncertainty.
Appears in Collections:European Research Studies Journal, Volume 17, Issue 4

Files in This Item:
File Description SizeFormat 
ERSJ,_17(4)_-_A3.pdf292.52 kBAdobe PDFView/Open

Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.