This research is intended to be a contribution to the continuing quest for improved methods of accounting. The catalyst for the research to be conducted is the current economic crisis. Evaluation of net firm value during this time is critical to ensure that early signal of failure can be detected. The weak indicator under historical cost convention can slow down the reaction time of regulator. In the face of market turmoil and inflation, traditional accounting did not present a “true and fair” picture in real terms. Therefore, this research report analyze the impact that market value information have on reported financial results and reported operating results (chapter 2), on share prices (chapter 3) and on bank capital (chapter 4). The research team would like to thank Malaysian Institute of Accountant through MAREF Research Foundation for its continuing financial support for our research, to our research assistants and to the Department of Accounting, Faculty of Business Management, Universiti Kebangsaan Malaysia for their help and moral support.

Research Team:
•  Norman Mohd Salleh,
•  Mohamat Sabri Hassan,
•  Abdul Ghafar Ismail (Dr)

Institute:
UKM