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MEASURABILITY OF FAIR VALUE ACCOUNTING AND THE REALITY OF IFRS

Profile image of OLUSEGUN P E T E R AJAGUNOLUSEGUN P E T E R AJAGUN

2017, International Journal of Advanced Engineering and Management Research

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Abstract

This study focuses on Fair value accounting and measurability so as to know how realistic is International Financial Reporting Standards (IFRS. The main objective of the paper is to examine how realistic is IFRS vis-avis the influence of fair value Accounting and measurability on profitability. The study employs content-analysis research method to review literature relevant to International Financial Reporting Standard (IFRS) 13. The data generated were analyzed using the OLS regression technique. The study concluded that financial reporting measurementsof performance and financial positionaffect almost everyone. They help to determine the allocation of capital across countries, economic sectors and companies and within individual businesses. They may well determine whether a business is regarded as a failure or a success, whether its employees earn a bonus, whether they keep their jobs, what dividends investors receive, and how much tax the business pays.

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