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Is Fair Value Accounting an Appropriate Measure of Today's Financial Instruments as more Firms Follow (IFRS)

Author

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  • Loay Salem Mohammad Al-Rahamneh

    (Full-time Lecturer, School Of Business, University of Jordan Author-Orcid ID: https://orcid.org/0000-0002-8273-5478)

Abstract

The study aimed at identifying whether the fair value accounting is appropriate measure of today's financial instruments as more firms follow (IFRS). The sample of the study consisted of a number of Jordanian industrial joint stock companies listed in the Amman Stock Exchange, and 50 out of 78 companies randomly selected. The results show a positive effect of fair value accounting on the appropriateness of the financial statement data in Jordanian industrial joint stock companies away from the use of IFRS. Accordingly, the study recommended the need to provide the appropriate environment for the application of fair value accounting standards because of their importance appear in this study.

Suggested Citation

  • Loay Salem Mohammad Al-Rahamneh, 2018. "Is Fair Value Accounting an Appropriate Measure of Today's Financial Instruments as more Firms Follow (IFRS)," Journal of Social Sciences (COES&RJ-JSS), , vol. 7(4), pages 260-276, October.
    • Handle: RePEc:jso:coejss:v:7:y:2018:i:4:p:260-276
    DOI: 10.25255/jss.2018.7.4.260.276
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    References listed on IDEAS

    as
    1. David Procházka, 2011. "The Role of Fair Value Measurement in the Recent Financial Crunch," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(1), pages 71-88.
    2. Peter R. Demerjian & John Donovan & Chad R. Larson, 2016. "Fair Value Accounting and Debt Contracting: Evidence from Adoption of SFAS 159," Journal of Accounting Research, Wiley Blackwell, vol. 54(4), pages 1041-1076, September.
    Full references (including those not matched with items on IDEAS)

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