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

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 (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.