Empirical evidence on factors explaining the measurement of fixed assets under the IFRS in large Latin American enterprises

Purpose This research aims to provide empirical evidence on the subsequent measurement criteria of fixed assets under International Financial Reporting Standards in companies from the six largest economies in Latin America. Design/methodology/approach Using an ordinal logistic regression model, the level of Fair Value (FV) application was established based on 2016–2018 financial information from 240 companies. Findings The results show (1) a very low level of application of the FV; (2) the economic sector of the company is highly likely to influence the choice of valuation criteria; and (3) the usefulness of the FV for improving information content and economic efficiency are prescriptive and probably rhetorical, implying a dissociation between the required standards and the economic context, as well as, that the effectiveness of financial reporting of the largest companies is more symbolic than socio-economic. Research limitations/implications The study recognizes limitations in access to financial information from non-listed companies, which led to the incorporation of financial information from companies that issue debt. Originality/value The research provides relevant information on unlisted companies, on which there is little research.