The effect of fair value on the Relevance of the book value of the stock: An applied study in a sample of Iraqi banks

Abstract

Evolution has created an environment that needs standards to keep pace with its constant change. This led to changes in the accounting measurement which in turn affected the value of earnings per share. Therefore, the question of the study problem is focused on: Is there an effect of the fair value on the appropriateness of the book value of the stock?

 This study aim to know the effect of fair value on the Relevance book value per share for the research sample bank listed in the Iraq Stock Exchange.

     The importance of the study is embodied in the importance of accounting information for users of the financial statements in making their decisions and relying on them in evaluating the performance of the economic unit, as well as the interest of standard-setters and researchers in the Relevance of earnings per share as it is one of the means of evaluating the quality of accounting information.

To achieve the goal of the research, the descriptive analytical approach was adopted in the practical aspect through statistical analysis using the (SPSS) program to measure the impact of fair value on the Relevance of the book value of the stock.

     There are differences in the impact between measurement and fair value disclosure on the explanatory power of accounting figures

    The research reached some recommendations, the most important of which are: Pay more attention to the disclosure of fair value and strive to adhere to the application of international financial standards that contribute to achieving the quality of information whose effects are positively reflected on future performance.