Investigation on consistency of bond valuation models Used by fund managers of pension scheme to International accounting standard 39
Abstract
The research involves an investigation on consistency of bond valuation models used by fund managers
of pension scheme to international accounting standard 39.
The data analyzed was obtained from fund managers using a data collection form.
The results show that most fund managers use models which differs with the recommendation of IAS 39
albeit their valuation do not differ significantly from values obtained by use of recommendations of IAS
39.
The results also indicate the biggest challenge in obtaining market prices from NSE is because of the low
activity on the bond market making some bonds to be designated with dormant historical prices.
Fund managers however agree that IAS 39 should be the benchmark valuation method adopted in bond
pricing.
Publisher
university of Nairobi School of Business