The ephemeral value of Stock - what IFRS and GAAP can(not) capture according to a Czech case study

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F17%3AN0000011" target="_blank" >RIV/25940082:_____/17:N0000011 - isvavai.cz</a>

Result on the web

<a href="http://car.aauni.edu/wp-content/uploads/Proceedings-from-the-AAU-Conference-IFRS-Prague-2017.pdf" target="_blank" >http://car.aauni.edu/wp-content/uploads/Proceedings-from-the-AAU-Conference-IFRS-Prague-2017.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The ephemeral value of Stock - what IFRS and GAAP can(not) capture according to a Czech case study

Original language description

Both the US GAAP with their "US accountants" background and the IFRS with their international drive, faced a dilemma about how to approach and evaluate stock. The EU embraces the IFRS and EU member states update their national laws accordingly. Since the valuation of stock is a challenge for US GAAP, IFRS, and Czech national standards, it is relevant to examine their conceptual approaches and then confront them with a real Czech case study with inside data. The price paid for stock in the given case departed from the value based on the standards, and the presented accounting and contractual price growth rate brings suggestions regarding the valuation of the stock of a company where a power battle over the control takes place. The underlying quasi-hypothesis about the ephemeral value of the stock is getting confirmed and the reasons for that are becoming recognized. Due to the conceptual instability regarding the legal fiction of the legal personality of a company, the virtual nature of stock and other factors, the ephemeral value of a stock can hardly be fully captured. The situation of a power battle demonstrates the inherent subjectivity and particularity. However, still the current valuation and appropriate standards could be improved, provided a deeper understanding of the nature of stock is achieved. Further, economic, law and behavioral aspects should be commonly appreciated and thus push the holistic understanding closer to the reality of business and life in the global post-modern society in the 21st century.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

IFRS: Global Rules and Local Use: Proceedings of the 5th International Scientific Conference

ISBN

978-80-906585-4-7

ISSN

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e-ISSN

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Number of pages

15

Pages from-to

158-172

Publisher name

Anglo-americká vysoká škola, z.ú.

Place of publication

Praha

Event location

Praha

Event date

Oct 20, 2017

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

000431393100012