Abstract
The use of Fair Value in financial reporting has developed a debate about the impact of fair value accounting on Earning Quality. FVA is a market-based measurement. Nevertheless, Fair Value is considered unreliable and often it is subject to managerial discretion, especially when markets are illiquid or inactive. Fair value is based on subjectivity in estimation that allows management opportunities for the exercise of judgments and intentional bias as a result the quality of financial reporting decrease and negatively affects stakeholders’ decisions. Management discretion can result in a higher earning quality and in a reduced amount of earning quality.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
