Abstract

Al-awaqlh, Abdulaziz Abdullah. The Extent of Applying the Fair Value Accounting as an Alternative Treatment and its Impact on the Qualitative Characteristics of Accounting Information: An Empirical Study. Master Thesis, Yarmouk University, 2012. (supervisor. Prof. Turki Raji AlHamoud). This study aims to identify the extent of applying the fair value accounting as an allowed alternative treatment contained in the International Accounting Standards Nos.( 16, 38, and40) in the Jordanian Industrial corporations. It also aims to identify the extent of disclosure of the fair value accounting in the financial statements and its impact on the characteristics of relevance and reliability of accounting information and to identify the main obstacles facing the Jordanian industrial corporations in the application of fair value accounting. To achieve the objectives of the study, the researcher developed a questionnaire that was distributed to financial managers, heads of accounting departments, and internal auditors of half of listed industrial corporations in Amman Bourse (38 companies). The response rate was (76.3%). To test the hypotheses of the study statistical analysis of averages, percentages, and standard deviations, were used. One-Sample-T-Test and analysis of variance to accept or reject the hypotheses of the study were also used. The results of the study are as follows: The level of application and disclosure of fair value accounting as an allowed alternative accounting treatment contained in the (IAS38) and (IAS40) is low, while it is not applied as an alternative treatment or disclosed in accordance with international standard (16). There is a statistically significant effect of the application of fair value accounting as an alternative accounting treatment on the relevance and reliability qualitative characteristics of accounting information. There are three main obstacles facing the Jordanian companies in the application of fair value accounting as an allowed alternative accounting treatment: when using the method of fair value the corporate governance enters the process of accounting measurement. A second obstacle is the lack of compatibility between instructions of the oversight bodiesgovernmental organizations and the accounting treatments of fair value. The third obstacle is the lack of an active market to determine the fair value of the assets. Based on the results of this study, the researcher recommends that Jordanian companies increase the application of international accounting standards when dealing with fair value accounting and the need for government oversight bodies governing the corporations to ensure the compatibility between its instructions and the accounting treatments of fair value. Keywords: Fair value, Jordanian industrial corporations, International accounting standards, Qualitative characteristics of accounting information, Reliability, Relevance.

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