Afvejningen mellem relevans og pålidelighed i regnskabsmæssig måling: En analyse af skift fra dagsværdi til historisk kostpris under årsregnskabsloven, understøttet af IFRS som fortolkningsbidrag: En analyse af skift fra dagsværdi til historisk kostpris under årsregnskabsloven, understøttet af IFRS som fortolkningsbidrag
Oversat titel
Balancing Relevance and Faithful Representation in Accounting Measurement: An Analysis of the Transition from Fair Value to Historical Cost under the Danish Financial Statements Act, Supported by IFRS as Interpretative Guidance: An Analysis of the Transition from Fair Value to Historical Cost under the Danish Financial Statements Act, Supported by IFRS as Interpretative Guidance
Forfatter
Semester
4. semester
Uddannelse
Udgivelsesår
2026
Afleveret
2026-01-02
Antal sider
69
Abstract
This thesis examines whether, under the Danish Financial Statements Act (Årsregnskabsloven, ÅRL), it is permissible to change the measurement basis of assets from fair value to historical cost, and whether the higher reliability associated with historical cost can outweigh the result-ing loss of relevance such that the financial statements, taken as a whole, provide a more true and fair view. The analysis is conducted within the legal framework of ÅRL, with IFRS/IAS applied as interpretative guidance where relevant. Over recent decades, fair value measurement has gained increased importance in Danish and international financial reporting due to its perceived ability to provide timely, market-based information. However, this development has also led to increased reliance on valuation models and management assumptions, particularly where observable market prices are unavailable. As a result, concerns regarding measurement uncertainty, subjectivity, and limited verifiability have become increasingly prominent, especially in relation to Level 3 fair value measurements. Against this background, the thesis addresses the fundamental accounting trade-off between relevance and reliability. While fair value is often associated with higher relevance, this ad-vantage presupposes a sufficient degree of measurement reliability. Where this condition is not fulfilled, the informational value of fair value may be significantly reduced, raising the question of whether historical cost may, in certain circumstances, provide a more faithful representation. Methodologically, the thesis applies a combined legal-dogmatic and accounting-theoretical ap-proach, supplemented by qualitative interviews with accounting professionals. The legal analy-sis focuses on ÅRL § 11 and Chapter 7, as well as IAS 8 and the IASB Conceptual Framework as interpretative frameworks for assessing relevance, faithful representation, and measurement uncertainty. The analysis shows that ÅRL does not establish an absolute hierarchy between fair value and historical cost. Instead, the decisive criterion is whether the chosen measurement basis contrib-utes to a more true and fair view. The findings demonstrate that a change from fair value to historical cost may be justified where fair value measurements are subject to significant uncer-tainty and where historical cost provides greater verifiability, consistency, and understandabil-ity. In particular, the results indicate that the higher reliability of historical cost can, in specific situ-ations, outweigh the loss of relevance associated with abandoning fair value measurement, es-pecially for assets measured using Level 3 inputs. The interview study supports this conclusion, as practitioners emphasize that such fair value measurements are often adjusted for or disre-garded by users in practice. Overall, the thesis concludes that fair value and historical cost should not be regarded as hierar-chically ordered measurement bases. Accordingly, a change in measurement basis from fair value to historical cost can be permissible under ÅRL, provided that the change is well rea-soned and results in a more true and fair view of the financial statements, considering the na-ture of the asset, the degree of measurement uncertainty, and the information needs of financial statement users.
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