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Relationship between Fair Value Accounting Adoption and Financial Reporting Quality
Abstract
The purpose of present research is to assess the impact of fair value accounting adoption while preparing financial reports in financial reporting quality. This study has taken five determinants of financial reporting quality. These determinants are faithful representation, relevance, understandability, comparability and verifiability. Banking sector of Pakistan was chosen and five banks were selected for data collection. Employees who are responsible for preparing financial reports were selected as sample utilizing structured questionnaire. Findings indicate that fair value accounting adoption has positive significance impact on determinants of financial reporting quality specifically, relevance, faithful representation, understandability, comparability. Moreover, results indicate that verifiability is also significantly related with fair value accounting adoption. Findings are beneficial for those financial managers which are responsible to prepare financial report.
Authors
Dr. Salman Ali Qureshi
Assistant Professor, Department of Business Administration, Allama Iqbal Open University, Islamabad, Pakistan
Dr. Bilal Anwar
Assistant Professor, Department of Business Administration, University of Sahiwal, Punjab, Pakistan
Riaz Hussain Ansari
Ph D Scholar, Department of Business Administration, University of Sahiwal, Punjab, Pakistan
