The reliability of investment property fair value estimates

J. Richard Dietrich, Mary S. Harris, Karl A. Muller

Research output: Contribution to journalArticlepeer-review

113 Citations (SciVal)


We investigate the reliability of mandatory annual fair value estimates for UK investment property. We find that appraisal estimates understate actual selling prices and are considerably less biased and more accurate measures of selling price than respective historical costs. Investigations of managerial discretion over fair value reporting reveal that managers select among permissible accounting methods to report higher earnings, time asset sales to smooth reported earnings changes, smooth reported net asset changes and boost fair values prior to raising new debt. Finally, we find that the reliability of appraisal estimates increases when monitored by external appraisers and Big 6 auditors.

Original languageEnglish (US)
Pages (from-to)125-158
Number of pages34
JournalJournal of Accounting and Economics
Issue number2
StatePublished - Oct 2000

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'The reliability of investment property fair value estimates'. Together they form a unique fingerprint.

Cite this