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The value relevance of superannuation disclosures by Australian‐listed firms sponsoring defined benefit plans
Author(s) -
Ang Nicole,
Gallery Gerry,
Sidhu Baljit K.
Publication year - 1999
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/1467-629x.00024
Subject(s) - relevance (law) , accounting , business , principal (computer security) , value (mathematics) , actuarial science , explanatory power , economics , law , political science , philosophy , epistemology , machine learning , computer science , operating system
This paper investigates the value relevance of (employer sponsored defined benefit plan) superannuation disclosures required by AASB 1028. It addresses the competing claims by standard setters and lobbyists that such disclosures would (not) enhance the relevance and reliability of financial statements. It presents three principal findings. First, disclosed superannuation information is value relevant in the industrial sector, where these items tend to be material. Second, the market weights on the required disclosures are typically higher than those on recognised assets and liabilities. Third, and in contrast to the findings in similar US studies, accrued benefits do not have higher explanatory power relative to vested benefits.