Dániel Máté Kovács: The role and application of fair value accounting in the Hungarian regulatory framework

Dániel Máté Kovács: The role and application of fair value accounting in the Hungarian regulatory framework Department of Management Accounting Supervisors: János Bosnyák PhD Rezső Baricz CSc ©Dániel Máté Kovács All rights reserved! Corvinus University of Budapest Doctoral Programme in Management and Business Administration Dániel Máté Kovács: The role and the application of fair value accounting in the Hungarian regulatory framework Ph.D thesis Budapest, 2013 Contents Table of contents Introduction Definition of approach and area of research 12 Embeddedness of accounting 15 Role of fundamental norms in accounting 19 4.1 4.1.1 Underlying assumptions 20 4.1.2 Qualitative characteristics and the cost constraint 22 4.1.3 Relationship between goal of financial reporting and qualitative characteristics 25 4.2 Fundamental norms in the system of IFRSs 20 Fundamental norms of Hungarian accounting regulation 29 Measurement and valuation in accounting 32 5.1 Concept of accounting measurement 32 5.2 Relationship of measurement and valuation 36 5.3 Valuation in the current accounting regulation 40 5.3.1 Measurement bases in the current regulation 40 5.3.2 Planned new catalogue of measurement bases 44 5.3.3 Rules of assignment in the current regulation 49 5.4 Accounting valuation – theoretical approaches 53 5.4.1 The axiomatic model of accounting valuation 53 5.4.2 Relationship between accounting valuation and income (profit) 56 5.4.3 Criticisms of accounting valuation 61 The conceptual system of fair value accounting 66 6.1 The concept of fair value in the system of IFRSs 68 6.2 The concept of fair value in the Hungarian regulation 72 6.3 The underlying content of the concept of fair value 76 BK 6.3.1 Assumptions behind fair value 76 6.3.2 The economic background of fair value 79 6.3.3 Fair value, (current) market value, value-in-use 82 6.3.4 Income from the perspective of fair value accounting 84 Contents 6.4 6.4.1 The approach types of fair value measurements 88 6.4.2 Inputs used during the measurement; the fair value hierarchy 89 6.4.3 Operation of the hierarchical measurement model 92 6.4.4 Measurement of fair value in the Hungarian regulation 96 6.5 Fair value in the scope of fundamental norms 100 6.5.1 Value relevance research concerning fair value 100 6.5.2 Fair representation reflected in market imperfections 105 6.5.3 Comparability and international harmonization 108 6.6 The framework of fair value measurement 88 Scope of fair valuation in current regulation 111 6.6.1 Fair value in the system of IFRSs 111 6.6.2 Fair value in the Hungarian regulation 112 The foundation of empirical study and the research hypotheses 119 7.1 Former empirical studies 119 7.1.1 Choice of fair value 120 7.1.2 Methodology of fair value measurement 123 7.1.3 A summary of the empirical studies presented 124 7.2 The path leading to the hypotheses 128 7.3 Establishment of hypotheses 129 Verification of the hypotheses 133 8.1 Scope of examination; data sources 133 8.1.1 Data of corporate income tax returns (DB1 database) 133 8.1.2 Data of auditor questionnaire survey (DB2 database) 135 8.1.3 Data of financial statements of listed companies (DB3 database) 138 8.1.4 Other data sources 140 8.2 Methods and procedures used for verifying the hypotheses 140 8.3 Verification of Hypothesis H1 144 8.4 Verification of Hypothesis H2 149 BK 8.4.1 Sub-hypothesis H2/a 149 8.4.2 Sub-hypothesis H2/b) 154 Contents 8.5 8.5.1 Examination of the asset structure in general 167 8.5.2 Examination of asset structure per volume category 170 8.5.3 Possible conclusions using the DB2 database 174 8.6 Verification of Hypothesis H4 175 8.6.1 Sub-hypothesis H4/a) 175 8.6.2 Sub-hypothesis H4/b) 181 8.6.3 Sub-hypothesis H4/c) 188 8.7 Verification of Hypothesis H3 167 Verification of hypothesis H5 190 Summary and conclusions 194 9.1 The role of fair value accounting 194 9.2 Application of fair value accounting 196 9.3 Recommendations for improving the Hungarian regulation 197 References 201 Relevant own publications 216 Annexes 217 Annex I The relevant part of Form-1029 (DB1 database) 217 Annex II Cover letter and questionnaire of auditor survey 221 Annex III Descriptive statistics of DB2 database 230 Annex IV The listed companies in the research (DB3 database) 246 Annex V Observations of DB3 database 248 Annex VI Details of verification of hypothesis H2 249 The asset structure of companies with valuation reserve 249 Hierarchical cluster analysis – dendogram 251 Details of the non-hierarchical cluster analysis 252 Details of discriminant analysis 254 The NACE classification of the clusters 256 Frequency of fair valuation (DB2 database) 258 Annex VII BK Details of verification of hypothesis H3 263 Distribution assets possibly measured at fair value 263 Categorization of the distribution of assets possibly measured at fair value 264 Categorization of the gross values of PPE 269 Reasons for not opting for fair value – Friedman test (DB2 database) 270 Contents Annex VIII Testing normality of total assets and sales revenue 271 Differentiation of companies using fair valuation 272 Fair valuation as a function of size – Friedman test (DB2 database) 273 Differentiation of share capital – equity ratio according to the size 275 Testing normality of leverage ratios 276 Equity position as a function of using fair valuation 277 The effect of fair valuation on the distribution based on leverage ratios 278 Sample based on entities not opting for fair value 279 Details of the logistic regression model 280 10 Reasons for choosing fair value– Friedman test (DB2 database) 281 11 Statistics of foreign-owned companies 282 Annex IX BK Details of verification of hypothesis H4 271 Details of verification of hypothesis H5 284 The methodology of fair value measurement (DB2 database) 284 Valuation methods and the fair valuation of real estates 287 Contents List of figures Figure 1: The different spectrums of accounting theory and regulation 17 Figure 2: Qualitative characteristics of financial statements 27 Figure 3: Content of concept of historical cost in IAS 16 43 Figure 4: System of planned measurement bases 45 Figure 5: The operation of fair value hierarchy 93 Figure 6: The general logic of DCF models based on accounting information 95 Figure 7: Results of the Mann-Whitney test of revenues 178 Figure 8: Results of the Mann-Whitney test of total assets 178 Figure 9: Results of the Mann-Whitney test of equity/total assets ratio 183 Figure 10: Results of the Mann-Whitney test of equity/share capital ratio 183 BK Contents List of tables Table 1: The dual nature of accounting valuation 42 Table 2: Planned measurement bases in the IFRS 48 Table 3: Key measurement bases in the IFRS 52 Table 4: Underlying assumptions behind fair value 76 Table 5: Relevance and reliability in the fair value model and the historical cost model 104 Table 6: The scope of fair valuation in the system of IFRSs 111 Table 7: The differentiation of Hungarian enterprises according to size 117 Table 8: The scope of fair valuation in the Hungarian regulation 118 Table 9: The key features of the empirical studies presented 127 Table 10: Companies included in the DB3 database 138 Table 11: Development of total assets categories 2007-2010 141 Table12: Development of revenue categories 2007-2010 141 Table 13: Development of headcount categories 2007-2010 142 Table 14: Frequency of choice of fair valuation as a function of size 150 Table 15: The difference between the balance sheet value and analytical value of intangible and tangible assets 151 Table 16: The value of the valuation reserve in observations involving a positive difference variable 151 Table 17: The difference between the balance sheet value and the analytical value of intangible and tangible assets of entities with a valuation reserve 152 Table 18: Frequency of fair valuation of assets – unweighted ratios 153 Table 19: Frequency of fair valuation of assets – weighted ratios 153 Table 20: Clusters of entities with valuation reserve 155 Table 21: Verification of the stability of clusters – discriminant analysis 155 Table 22: The asset structure of Cluster #1 156 Table 23: Distribution within tangible assets for Cluster #1 (net values) 157 Table 24: Distribution within tangible assets for Cluster #1 (gross values) 157 Table 25: Asset structure of Cluster #2 158 Table 26: Asset structure of Cluster #3 159 Table 27: Asset structure of Cluster #4 160 Table 28: Asset structure of Cluster #5 160 Table 29: Distribution within tangible assets for Cluster #5 (net values) 161 Table 30: Distribution within tangible assets for Cluster #5 (gross values) 161 BK Annexes Differentiation of share capital – equity ratio according to the size Based on equity with valuation reserve: ST_JT_KAT Negative Count Total assets categories Revenue categories 0%-50% Row N % Count 51%-66% Row N % Count Row N % Above 66% Count Row N % 1,00 69496 30,8% 20435 9,1% 7701 3,4% 127825 56,7% 2,00 12514 14,3% 3315 3,8% 1575 1,8% 70298 80,2% 3,00 2632 10,9% 640 2,6% 254 1,0% 20720 85,5% 4,00 2079 10,3% 464 2,3% 220 1,1% 17432 86,3% 5,00 881 9,7% 186 2,0% 93 1,0% 7967 87,3% 6,00 872 9,1% 216 2,3% 113 1,2% 8342 87,4% 7,00 267 10,3% 64 2,5% 38 1,5% 2214 85,7% 8,00 ,00 48 20807 5,9% 31,1% 18 8119 2,2% 12,1% 10 2854 1,2% 4,3% 739 35163 90,7% 52,5% 1,00 46476 30,0% 12267 7,9% 4876 3,1% 91470 59,0% 2,00 15685 17,7% 3613 4,1% 1631 1,8% 67906 76,4% 3,00 2752 10,9% 629 2,5% 304 1,2% 21611 85,4% 4,00 1774 8,1% 363 1,7% 174 0,8% 19523 89,4% 5,00 664 6,7% 159 1,6% 67 0,7% 8959 91,0% 6,00 505 5,5% 138 1,5% 61 0,7% 8460 92,3% 7,00 104 4,9% 42 2,0% 27 1,3% 1939 91,8% 8,00 22 4,0% 1,5% 10 1,8% 506 92,7% Based on equity without valuation reserve: ST_JT_ÉT0_KAT Negative Count Total assets categories Revenue categories BK 0%-50% Row N % Count 51%-66% Row N % Count Row N % Above 66% Count Row N % 1,00 69556 30,9% 20445 9,1% 7702 3,4% 127747 56,7% 2,00 12710 14,5% 3341 3,8% 1578 1,8% 70073 79,9% 3,00 2804 11,6% 658 2,7% 259 1,1% 20525 84,7% 4,00 2308 11,4% 486 2,4% 220 1,1% 17181 85,1% 5,00 1039 11,4% 206 2,3% 100 1,1% 7782 85,3% 6,00 1174 12,3% 233 2,4% 125 1,3% 8011 83,9% 7,00 378 14,6% 78 3,0% 41 1,6% 2086 80,8% 8,00 ,00 77 20962 9,4% 31,3% 20 8127 2,5% 12,1% 12 2857 1,5% 4,3% 706 34991 86,6% 52,3% 1,00 46775 30,2% 12318 7,9% 4887 3,2% 91108 58,7% 2,00 15963 18,0% 3646 4,1% 1634 1,8% 67592 76,1% 3,00 2903 11,5% 635 2,5% 309 1,2% 21449 84,8% 4,00 1933 8,9% 380 1,7% 178 0,8% 19343 88,6% 5,00 756 7,7% 161 1,6% 68 0,7% 8864 90,0% 6,00 604 6,6% 147 1,6% 66 0,7% 8347 91,1% 7,00 125 5,9% 44 2,1% 26 1,2% 1917 90,8% 8,00 25 4,6% 1,6% 12 2,2% 500 91,6% 275 Annexes Testing normality of leverage ratios Equity – Total assets ratio, without valuation reserve: Share capital – Equity ratio, without valuation reserve: BK 276 Annexes Equity position as a function of using fair valuation Equity – Total assets ratio – Kolmogorov-Smirnov test, P=5% Share capital – Equity ratio – Kolmogorov-Smirnov test, P=5% BK 277 Annexes The effect of fair valuation on the distribution based on leverage ratios Equity – Total assets ratio: Count ST_ÉT0_KAT Negative ST_MFŐ_KAT 0%-25% 26%-50% Total 51%-75% Above 75% Negative 332 0 0 332 0%-25% 692 436 0 1128 26%-50% 316 416 377 0 1109 51%-75% 181 182 410 393 1166 58 57 86 256 619 1076 1579 1091 873 649 619 4811 Above 75% Total Share capital – Equity ratio: Count ST_JT_ÉT0_KAT Negative 0%-50% Total 51%-66% Above 66% Negative 332 0 332 0%-50% 114 36 0 150 51%-66% 44 27 74 1099 223 104 2822 4248 1589 286 107 2822 4804 ST_JT_KAT Above 66% Total BK 278 Annexes Sample based on entities not opting for fair value Total assets categories Cumulative Frequency Percent Valid Percent Percent 4,00 1401 34,4 34,4 34,4 5,00 899 22,1 22,1 56,5 6,00 1263 31,0 31,0 87,5 7,00 412 10,1 10,1 97,6 8,00 98 2,4 2,4 100,0 Total 4073 100,0 100,0 Valid Revenue categories Cumulative Frequency Percent Valid Percent Percent 4,00 1764 43,3 43,3 43,3 5,00 1030 25,3 25,3 68,6 6,00 1077 26,4 26,4 95,0 7,00 164 4,0 4,0 99,1 8,00 38 ,9 ,9 100,0 Total 4073 100,0 100,0 Valid Valid Frequency of Frequency of tangible gross value assets of real estates 4073 4073 0 Mean ,6283 ,7932 Median ,6166 ,7812 Minimum ,30 ,60 Maximum 1,00 1,00 10 ,3652 ,6327 20 ,4276 ,6717 30 ,4892 ,7054 40 ,5522 ,7420 50 ,6166 ,7812 60 ,6814 ,8196 70 ,7550 ,8681 80 ,8336 ,9240 90 ,9162 ,9832 N Missing Percentiles BK 279 Annexes Details of the logistic regression model Categorical Variables Codings Parameter coding Frequency Negative 0%-50% 51%-66% Above 66% ST_JT_ÉT0_KAT (1) 1,000 ,000 ,000 ,000 1841 360 144 6532 (2) (3) ,000 1,000 ,000 ,000 ,000 ,000 1,000 ,000 Model Summary Step -2 Log likelihood Cox & Snell R Nagelkerke R Square Square 10934,145a ,137 ,184 Hosmer and Lemeshow Test Step Chi-square df ,000 Sig 1,000 Contingency Table for Hosmer and Lemeshow Test VÉ_IN = ,00 Step Observed 3710 111 252 VÉ_IN = 1,00 Expected 3710,000 111,000 252,000 Observed 2822 393 1589 Total Expected 2822,000 393,000 1589,000 6532 504 1841 Classification Tablea Predicted VÉ_IN Observed ,00 Step Percentage Correct 1,00 ,00 3710 363 91,1 1,00 2822 1982 41,3 VÉ_IN Overall Percentage 64,1 a The cut value is ,500 Variables in the Equation B a Step ST_JT_ÉT0_KAT ST_JT_ÉT0_KAT(1) ST_JT_ÉT0_KAT(2) ST_JT_ÉT0_KAT(3) Constant 2,115 1,626 1,335 -,274 S.E ,072 ,133 ,192 ,025 Wald 993,334 856,710 149,841 48,208 119,970 df Sig 1 1 Exp(B) ,000 ,000 ,000 ,000 ,000 8,290 5,081 3,802 ,761 a Variable(s) entered on step 1: ST_JT_ÉT0_KAT BK 280 Annexes 10 Reasons for choosing fair value– Friedman test (DB2 database) Unweighted mean ranks Median Unweighted mean ranks Median Because of equity position 4,69 4,89 Because of owners’ requirements 4,95 4,76 Because of enhancement of profit 3,64 3,41 Because of group policy 3,49 3,72 Because of IFRS reporting 3,19 3,50 Because of credit rating 4,41 4,51 Because of tax benefits 3,62 3,20 Test Statisticsa N Chi-Square df Asymp Sig 49 976 51,154 989,421 6 ,000 0,000 a Friedman Test BK 281 Annexes 11 Statistics of foreign-owned companies Using of fair valuation as a function of foreign ownership: VÉ_IN ,00 1,00 Count Row N % Count Row N % ,00 349457 98,9% 3964 1,1% 1,00 25405 96,8% 847 3,2% KULF_TÖBBS Categorization of foreign-owned companies based on size: KULF_TÖBBS ,00 Count Total assets categories (without valuation reserve) Revenue categories BK 1,00 Row N % Count Row N % 1,00 217139 96,2% 8579 3,8% 2,00 81965 93,2% 5965 6,8% 3,00 21640 89,1% 2647 10,9% 4,00 17180 85,4% 2942 14,6% 5,00 7201 79,9% 1817 20,1% 6,00 6630 71,1% 2695 28,9% 7,00 1368 55,0% 1119 45,0% 8,00 298 37,9% 488 62,1% ,00 59533 88,9% 7411 11,1% 1,00 148287 95,6% 6805 4,4% 2,00 84853 95,5% 3982 4,5% 3,00 23737 93,8% 1559 6,2% 4,00 19932 91,3% 1903 8,7% 5,00 8531 86,6% 1318 13,4% 6,00 7142 77,9% 2022 22,1% 7,00 1212 57,4% 900 42,6% 8,00 194 35,5% 352 64,5% 282 Annexes The difference of valuation reserve as a function of foreign ownership (p=5%): BK 283 Annexes Annex IX Details of verification of hypothesis H5 The methodology of fair value measurement (DB2 database) Friedman test Unweighted Median mean ranks Unweighted mean ranks Median Fair value measurement: quoted prices 3,70 3,77 Fair value measurement: comparative prices 3,45 3,39 Fair value measurement: income-based models 2,37 2,58 Fair value measurement: cost-based models 2,67 2,54 Fair value measurement: combined methods 2,81 2,72 Test Statisticsa N Chi-Square df Asymp Sig 49 976 41,554 813,121 4 ,000 0,000 a Friedman Test BK 284 Annexes Wilcoxon signed rank test – unweighted variables N Mean Rank Negative Ranks Comparative price Quoted price Income - Quoted price Cost - Quoted price Combined - Quoted price Income Comparative price Cost - Comparative price Combined Comparative price Cost - Income Combined - Income Combined - Cost Sum of Ranks 19a 15,63 297,00 b 16,58 199,00 13,50 ,00 351,00 ,00 15,70 10,63 392,50 42,50 16,81 17,50 403,50 157,50 11,50 ,00 253,00 ,00 13,10 9,50 262,00 38,00 14,73 19,11 324,00 172,00 4,75 5,69 9,50 45,50 2,83 8,77 8,50 96,50 Positive Ranks 12 Ties 18c Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks 49 26d 0e 23f 49 25g 4h 20i 49 24j 9k 16l 49 22m 0n 27o 49 20p 4q 25r 49 22s 9t 18u 49 2v 8w 39x 49 3y 11z 35aa 49 8ab Positive Ranks 9ac 5,50 44,00 12,11 109,00 32ad Ties Total 49 Test Statisticsa Compara Income - Cost - Combine Income - Cost - Combine Cost - Combine Combine tive price Quoted Quoted d- Compara Compara d- Income d- d - Cost - Quoted price price Quoted tive price tive price Compara b b -1,509b -1,860c -2,790c -1,559c ,001 ,131 ,063 ,005 ,119 price Z price b -,971 b -4,501 b -3,815 Income tive price b -2,222 -4,146 -3,227 Asymp Sig ,331 ,000 ,000 ,026 ,000 (2-tailed) a Wilcoxon Signed Ranks Test b Based on positive ranks c Based on negative ranks BK 285 Annexes Wilcoxon signed rank test – weighted variables N Mean Rank Negative Ranks Comparative price Quoted price Income - Quoted price Cost - Quoted price Combined - Quoted price Income - Comparative price Cost - Comparative price Combined Comparative price Cost - Income Combined - Income Combined - Cost Sum of Ranks 348a 261,00 90829,00 b 295,46 58502,00 226,50 ,00 102378,00 ,00 297,52 358,91 166314,00 15792,00 317,77 442,84 170640,50 67754,50 163,50 ,00 53301,00 ,00 255,35 241,56 106990,50 20774,50 273,20 366,54 116654,50 63045,50 91,15 204,35 13945,50 27382,50 102,88 262,85 16975,50 58879,50 Positive Ranks 198 Ties 430c Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks 976 452d 0e 524f 976 559g 44h 373i 976 537j 153k 286l 976 326m 0n 650o 976 419p 86q 471r 976 427s 172t 377u 976 153v 134w 689x 976 165y 224z 587aa 976 114ab Positive Ranks 153ac Ties 709ad Total 76,08 8673,00 177,16 27105,00 976 Test Statisticsa Compara Income - Cost - Combine Income - Cost - Combine Cost - Combine Combine tive price Quoted Quoted d- Compara Compara d- Income d- d - Cost - Quoted price price Quoted tive price tive price Compara price Z price Income tive price -4,436b -18,616b -17,742b -9,905b -15,830b -13,259b -6,413b -4,923c -9,635c -7,420c ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 Asymp Sig (2-tailed) a Wilcoxon Signed Ranks Test b Based on positive ranks c Based on negative ranks BK 286 Annexes Valuation methods and the fair valuation of real estates Friedman test Rarely encountered the fair valuation of real estates Unweighted mean ranks Median Unweighted mean ranks Frequently encountered the fair valuation of real estates Median Unweighted mean ranks Median Unweighted mean ranks Median Fair value measurement: quoted prices 3,70 2,5 3,78 3,75 3,78 Fair value measurement: comparative prices 3,47 1,5 3,42 3,54 3,29 Fair value measurement: income-based models 2,36 2,69 2,29 2,13 Fair value measurement: cost-based models 2,66 2,43 2,75 1,5 3,00 Fair value measurement: combined methods 2,81 2,68 2,67 2,80 Test Statisticsa N Chi-Square df Asymp Sig 32 775 12 182 27,767 722,315 10,889 157,899 4 4 0,028 0,000 0,028 0,000 a Friedman Test BK 287 Annexes Wilcoxon signed rank test – group: rarely encountered real estates N Negative Ranks Comparative price Quoted price Income - Quoted price Cost - Quoted price Combined - Quoted price Income Comparative price Cost - Comparative price Combined Comparative price Cost - Income Combined - Income Combined - Cost Mean Rank Sum of Ranks 293b 229,07 67117,00 c 231,64 38453,00 170,00 ,00 57630,00 ,00 243,59 233,36 111321,00 6534,00 247,34 355,16 104871,50 41198,50 118,50 ,00 27966,00 ,00 172,83 184,50 56341,00 3690,00 178,71 343,50 59689,00 32976,00 83,50 166,85 12525,00 11346,00 81,50 236,50 13203,00 35002,00 Positive Ranks 166 Ties 316d Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks 775 339e 0f 436g 775 457h 28i 290j 775 424k 116l 235m 775 236n 0o 539p 775 326q 20r 429s 775 334t 96u 345v 775 150w 68x 557y 775 162z 148aa 465ab 775 48ac Positive Ranks 116ad Ties 611ae Total 28,67 1376,00 104,78 12154,00 775 Test Statisticsa,b Compara Income - Cost - Combine Income - Cost - Combine Cost - Combine Combine tive price Quoted Quoted d- Compara Compara d- Income d- d - Cost - Quoted price price Quoted tive price tive price Compara price Z price Income tive price -5,107c -16,200c -17,178c -8,882c -13,466c -14,380c -5,279c -,670c -7,055d -9,100d ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,503 ,000 ,000 Asymp Sig (2tailed) b Wilcoxon Signed Ranks Test c Based on positive ranks d Based on negative ranks BK 288 Annexes Wilcoxon signed rank test – group: frequently encountered real estates N Negative Ranks Comparative price - Positive Ranks Quoted price Ties Income - Quoted price Cost - Quoted price Combined - Quoted price Income Comparative price Cost - Comparative price Combined Comparative price Cost - Income Combined - Income Combined - Cost Mean Rank Sum of Ranks 53b 28,84 1528,50 c 66,45 2126,50 53,50 ,00 5671,00 ,00 48,84 98,50 4640,00 1576,00 70,81 54,96 7506,00 1539,00 43,00 ,00 3655,00 ,00 97,20 51,23 8553,50 3381,50 107,19 39,66 9432,50 2657,50 32,50 35,11 97,50 2317,50 42,50 35,19 127,50 2357,50 40,29 2659,00 64,50 1806,00 32 97d Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks Positive Ranks Ties Total Negative Ranks 182 106e 0f 76g 182 95h 16i 71j 182 106k 28l 48m 182 85n 0o 97p 182 88q 66r 28s 182 88t 67u 27v 182 3w 66x 113y 182 3z 67aa 112ab 182 66ac Positive Ranks 28ad Ties 88ae Total 182 Test Statisticsa,b Compara Income - Cost - Combine Income - Cost - Combine Cost - Combine Combine tive price Quoted Quoted d- Compara Compara d- Income d- d - Cost - Quoted price price Quoted tive price tive price Compara d d -6,101d -6,842c -6,707c -1,644d ,000 ,000 ,000 ,000 ,100 price Z price c -1,339 d -9,141 d -4,550 Income tive price d -6,902 -8,136 -4,705 Asymp Sig (2,180 ,000 ,000 ,000 ,000 tailed) b Wilcoxon Signed Ranks Test c Based on negative ranks d Based on positive ranks BK 289