Релевантност на објективната вредност за финансиското известување во Република Македонија

Abstract

The central problem analysed in the dissertation paper refers to the value relevance of fair value for the financial reporting system of Republic of Macedonia. According to the accepted national strategy for financial reporting, International Financial Reporting Standards (IFRS) without adjustment or amendments represent the financial reporting framework for all entities. Recently, the requirements of these standards point towards greater use of fair value as measurement basis that best satisfies the qualitative characteristic of relevance. In the dissertation paper we develop a regression method designed to help us evaluate the quality of disclosed information on fair value and identify the factors that impact the quality of disclosures in Macedonian listed entities financial statements. The results of the analysis are incorporated in separate regression model designed to identify possible correlation with share returns as an evidence of fair value relevance to investors. Empirical model tests identify the size of companies, gearing and the type of auditor as statistically significant factors of fair value disclosure quality. In addition, the level of disclosure of fair value information has no incremental explanatory power for companies’ share returns over accounting earnings, concluding that fair value information is irrelevant for investors’ decision making. The research results of the dissertation paper can be used in future research designs covering financial reporting quality and value relevance of different accounting information. In addition, financial reporting standard setting body can utilize the findings of this paper in their efforts to shape future regulatory strategies for the financial reporting process in the Republic of Macedonia.