The value relevance of voluntary European embedded value disclosures: evidence from UK life insurance companies

1 January 2012

journal article
Published by Inderscience Publishers in International Journal of Accounting and Finance

Vol. 3 (4) , 343
https://doi.org/10.1504/ijaf.2012.051003

Abstract

This study examines the value relevance of the voluntary embedded value (EV) disclosures by publicly listed British life insurers pre and post the mandatory adoption of International Financial Reporting Standards (IFRS) in 2005. It provides evidence for the first time that the voluntary European embedded value (EEV) and market consistent embedded value (MCEV) disclosures are value relevant and have incremental information content over and above the statutory accounting information. It also shows that the changes in the methods by which EV numbers are calculated do not have any impact on the value relevance of EV disclosures.

Keywords

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