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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

An Examination of Potential Changes in Ratio Measurements Historical Cost
versus Fair Value Measurement in Valuing Tangible Operational Assets


Author(s): Pamela Smith Baker

Citation: Pamela Smith Baker, (2011) "An Examination of Potential Changes in Ratio Measurements Historical Cost versus Fair Value Measurement in Valuing Tangible Operational Assets" Vol. 11, Iss. 2, pp. 170 - 176

Article Type: Research paper

Publisher: North American Business Press

Abstract:

A fictitious property management company is created by randomly selecting 30 tangible, operational assets valued using both historical cost and fair value measurements. Two sets of financial statements are created for the years 2004 to 2008, one using the historical cost valuations and the other using the fair value measures. Ratio analysis performed shows that the ratios calculated using historical cost measures present more favorable profitability and asset utilization results, while ratios based upon fair value measures suggest more favorable debt utilization results.