지분법적용투자주식 공정가치 평가의 유용성에 관한 실증연구

In Korea, on adopting firstly equity method in KAS revised on March 30, 1996, because equity method was selectional, most of the firms accounted by cost method not adopting equity method. therefore equity method converted selectional into compulsory in SKAS revised on December 12, 1998. the equity method of fair value footnote disclosures was required explicitly for investments in publicly-traded equity accounted securities after SKAS NO.15 Equity Method became effective on December 31, 2004. In this study we examined whether the value relevance and information usefulness of the fair value information provided for publicly-traded equity accounted securities accounted for under the equity method. The purpose of this paper is to present positive evidences to understand footnote disclosures of the fair value information provided for publicly-traded equity accounted securities have some meaning. we found a significant positive relation between fair value information of publicly-traded equity accounted securities and investor firm market values and security returns. So it means that fair value information of publicly-traded equity accounted securities has the value relevance. Returns regressions provided evidence regarding relation between fair value changes of publicly-traded equity accounted securities and value changes in the financial statements of investor firm. It means that the fair value information of equity method investments has information usefulness. Results of our study should be useful in the debate over whether equity method investments should be recognized at fair values, and provide evidence over whether the fair value footnote disclosures for publicly-traded equity method investments required by SKAS No.15. were effective. An important intention of our study is that we only examine the value relevance and information usefulness of fair value information of equity method investments that have a quoted market price.