Value in Financial Reporting

Niels Christian Fischer Rosenvinge

Student thesis: Master thesis


The aim of this thesis is to perform a comparative analysis of the accounting standards from the two
organizations FASB and IASB regarding how the respective organization considers value as a theoretical
term and how this consideration shows in actual accounting standards. The end goal is to draw a conclusion
on the differences between the two organizations regarding value treatment and how these differences
might affect international financial reporting in the future, and play a part the current convergence project
between the two organizations.
In order to do so, a series of factors will be considered in regards to how the differences between the two
organizations occurs the current accounting standards, which factors affects hos each organization thinks
of value, and how the two organizations will try to affect external factors and their way of thinking about
value though their discourse. Critical Discourse Analysis will be utilized in order to gain a better
understanding of the latter.
The thesis shows that the two organizations both considers value to be a tool to be used by the users of
financial reports in their decision-making. It also shows that the two organizations have different opinions
of who the relevant users are, and that this condition plays a big part in how each organization views value
and its role in financial reporting.
IASB considers value to be a liquid element in financial reporting, which partly happens in an effort to
appease the needs of the investors in regards to how these uses financial reports in their decision-making.
FASB considers value to be more static and thereby less varying on a year-to-year basis, something that
allows the opportunity for the companies behind the financial reports to include more economic value in
the financial report.
The thesis concludes that there are differences in the treatment of value between the two organizations,
but also that there is an ongoing effort to minimize these differences. This effort comes in the form of
aligning the American standards with the European standards through the ongoing convergence project,
and because of this, the European standards and their viewpoint will dominate international accounting in
the coming years

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2017
Number of pages66