The Relationship of Fair Value Accounting to the Quality of Accounting Information in Companies Financial Reports: View of the External Auditors in Palestine

Authors

  • Dr. Khaled AL Madhoun Associate professor, University of Palestine, Gaza, Palestine

Keywords:

Fair value accounting (FVA), financial reports, quality of accounting information

Abstract

This study evaluated the relationship of the application of fair value accounting (FVA) on the quality of accounting information reported in Companies financial statements from the viewpoint of auditors in Palestine as one of the important financial statement stakeholder-groups. Data collected through the administration of a structured questionnaire on 32 auditors who are members of the Auditors Association in Palestine were analyzed using analytical descriptive statistics and a single sample t-test. The results revealed that the application of FVA significantly enhances the qualitative characteristics of accounting information. It further revealed that the relationship on the relevance characteristic is the most-pronounced. Moreover, the application of FVA is perceived to bolster the fundamental qualities of accounting information. The study concluded that the application of FVA has a significant relationship and role in the quality of accounting information. The study recommended to adopt academic and professional accounting programs related to fair value accounting, and to urge the preparation of financial reports and audits to enhance their publication, Holding programs for continuous development, training courses, seminars, and workshops for professional accounting societies to Greater coverage of fair value accounting.

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Published

2021-03-04

How to Cite

AL Madhoun, D. K. . (2021). The Relationship of Fair Value Accounting to the Quality of Accounting Information in Companies Financial Reports: View of the External Auditors in Palestine. Journal of Economics, Finance and Accounting Studies , 3(1), 39-57. Retrieved from https://al-kindipublisher.com/index.php/jefas/article/view/1387