Investigating the Relationship between Fair Value Accounting of Non-Current Assets and Audit Fees in Listed Companies in Tehran Stock Exchange

Author Name(s): Rohollah Rezaie Ardakani, *Karim Nemati, Fatemeh Moridi
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The aim of this study was to investigate the relationship between fair value accounting of non-current assets and audit fees in listed companies in Tehran Stock Exchange. This research is a kind of applied-correlational research. Data were collected by using reported information in the financial statements of companies listed on the Stock Exchange of Tehran. In order to realize the study objectives, five hypotheses have been developed. The statistical samples included 60 companies during the five years period from 2009 to 2013. To analyze the data, Excel and Eviews 7 software have been used. To assess the hypotheses, regression, Hasmr and F Limer tests were used that the results of this research show that revaluation of the balance sheet, profits and losses and revaluation of cash flow statement to audit fees has a significant relationship.


In the capital market, accounting information is the most important information that helps investors to make informed decisions. Financial Statements were known as the most important source of information for reflecting the results of operations and financial condition and cash flows of the business units. Also information from the financial statements are used in many important economic decisions such as buying and selling of stock, pricing of state-owned companies for privatization, making decision about earning division. In other words, information of financial statement is the main core of this decision- making that other information are used to complete it. Frequent adjustments of the financial statements due to the mistakes, can affect economic decisions. In some cases, these adjustments are so many that be determined in the Financial Statements of next year, it means that dividends were more than dividable earning. Nowadays, annual adjustments is one of the most important financial reporting challenges in Iran and it is need to be considered in further researches.



The results of the first hypothesis testing suggests that there is a significant relationship between revaluations of balance sheet and audit fees. Because, variable rate of revaluation on balance sheet is positive (0.316) and due to the significance level of t (0.00) is significant. According to the balance sheet role that reflects the company’s financial situation in current year and it is receiving much attention from investors and decision makers and managers and it plays a role in their decision-making and investing, so it has higher sensitivity and therefore auditors should spend more time on it, that needs to get more audit fees.

The results of this research is in line with Yao et al. (2014), Charles et al. (2010) and Etrdigiya et al. (2013) and it is opposite with Gontcharov’s et al (2013).

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