Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities

The International Accounting Standard (IAS) 27 should be used in the preparation of separate financial statements (SFS) for entities with securities traded on regulated markets within the European Union (EU) that adopt International Financial Reporting Standards (IFRS). This research aims to assess...

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Main Authors: Maria Carolina Ribeiro, Fábio Albuquerque, Paula Gomes Dos Santos
Format: Article
Language:English
Published: Taylor & Francis Group 2024-06-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2024.2371548
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author Maria Carolina Ribeiro
Fábio Albuquerque
Paula Gomes Dos Santos
author_facet Maria Carolina Ribeiro
Fábio Albuquerque
Paula Gomes Dos Santos
author_sort Maria Carolina Ribeiro
collection DOAJ
description The International Accounting Standard (IAS) 27 should be used in the preparation of separate financial statements (SFS) for entities with securities traded on regulated markets within the European Union (EU) that adopt International Financial Reporting Standards (IFRS). This research aims to assess the value relevance of SFS. Additionally, it also analyses the value relevance of the interests under IAS 27 reported therein. It uses documental analysis as a technique and archival research as a method, with entities from the major indices of EU countries as a research sample. Linear regression models are used for data analysis. The findings indicate that both the SFS and those interests influence the entities’ share prices. As far as the authors’ knowledge, this research solves a gap in the literature by assessing the value relevance of interests reported in the SFS and the SFS itself, which have not been reaching the same attention by researchers compared to studies with similar purposes but focusing on the consolidated financial statements. As a contribution, this study can benefit standard-setter bodies and local regulators in understanding the usefulness of SFS for stakeholders’ decision-making by stressing the relevance of those accounts, and the material items reported therein.
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spelling doaj-art-d4b9308f6b3c4690aabea172d7d3776e2025-08-20T03:42:53ZengTaylor & Francis GroupCogent Business & Management2331-19752024-06-0111110.1080/23311975.2024.2371548Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entitiesMaria Carolina Ribeiro0Fábio Albuquerque1Paula Gomes Dos Santos2ISCAL/Instituto Politécnico de Lisboa, Lisboa, PortugalISCAL/Instituto Politécnico de Lisboa, Lisboa, PortugalISCAL/Instituto Politécnico de Lisboa, Lisboa, PortugalThe International Accounting Standard (IAS) 27 should be used in the preparation of separate financial statements (SFS) for entities with securities traded on regulated markets within the European Union (EU) that adopt International Financial Reporting Standards (IFRS). This research aims to assess the value relevance of SFS. Additionally, it also analyses the value relevance of the interests under IAS 27 reported therein. It uses documental analysis as a technique and archival research as a method, with entities from the major indices of EU countries as a research sample. Linear regression models are used for data analysis. The findings indicate that both the SFS and those interests influence the entities’ share prices. As far as the authors’ knowledge, this research solves a gap in the literature by assessing the value relevance of interests reported in the SFS and the SFS itself, which have not been reaching the same attention by researchers compared to studies with similar purposes but focusing on the consolidated financial statements. As a contribution, this study can benefit standard-setter bodies and local regulators in understanding the usefulness of SFS for stakeholders’ decision-making by stressing the relevance of those accounts, and the material items reported therein.https://www.tandfonline.com/doi/10.1080/23311975.2024.2371548Accounting choicesIAS 27interestsseparate financial statementsvalue relevanceCollins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland
spellingShingle Maria Carolina Ribeiro
Fábio Albuquerque
Paula Gomes Dos Santos
Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
Cogent Business & Management
Accounting choices
IAS 27
interests
separate financial statements
value relevance
Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland
title Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
title_full Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
title_fullStr Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
title_full_unstemmed Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
title_short Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities
title_sort are the separate financial accounts also relevant assessing those accounts reported by listed european entities
topic Accounting choices
IAS 27
interests
separate financial statements
value relevance
Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland
url https://www.tandfonline.com/doi/10.1080/23311975.2024.2371548
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