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Fair Revaluation of Wine as an Investment

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Bocart, Fabian Y.R.P. Hafner, Christian [UCL]

The price of wine is a key topic among market participants interested in valuing their stock, including dealers and restaurants, and consumers who may be interested in optimizing their purchases. A closely related issue, revaluation is the need to regularly update the value of a stock. This need is especially acute in the growing industry of wine as an investment. In this case, fair-value measurement is compulsory by law. We briefly review methods available to funds and introduce a new quantitative method aimed at achieving compliance with IFRS (International Financial Reporting Standard) 13 for fair valuation. Using auction data on 26,640 lots, we apply this method to compute the current fair value of a basket of 232 different wines.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès restreint
Publication date 2015
Language Anglais
Journal information "Journal of Wine Economics" - Vol. 10, no.2, p. 190-203 (2015)
Peer reviewed yes
Publisher Cambridge University Press (New York)
issn 1931-4361
e-issn 1931-437X
Publication status Publié
Affiliation UCL - SSH/LIDAM/ISBA - Institut de Statistique, Biostatistique et Sciences Actuarielles
Keywords Fair valuation ; IFRS regulation ; wine investment funds
Links
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Bibliographic reference Bocart, Fabian Y.R.P. ; Hafner, Christian. Fair Revaluation of Wine as an Investment. In: Journal of Wine Economics, Vol. 10, no.2, p. 190-203 (2015)
Permanent URL http://hdl.handle.net/2078.1/171464