القياس بالقيمة العادلة لتحسين ‏شفافية الإبلاغ المالي وتأثيره في دعم القرارات الاستثمارية

Activation Measurement at Fair Value to Achieve Transparency of Financial Reporting and its Impact on Supporting Investment Decisions

The accounting measurement of historical cost is the most important measure of accounting for its objectivity and a Trust. However, it has been criticized for its Role in decision-making for it reflects historical events only; it does not provide future information and may sometimes lack relevance. IFRS`s have been Focused on providing more relevant, reliable and transparent measurement methods. Ensures that appropriate information provided and represents the true position of the economic unit. The objective of this research is to clarify the impact of the application of measurement at fair value in achieving financial reporting transparency and the impact of its application in the economic units of Iraq in achieving transparency of the financial statements and providing useful information for investment decision making. The importance of the research is of the importance of measurement at fair value as a subject of modern, contemporary topics that needs to clarify more to those interested, clarify the methods of accounting measurement at fair value, and the best levels favored by investors as applied the global measurement (S&P) to measure the level of transparency.

The application of fair value and disclosure of such measurement in the financial statements achieve a high level of transparency in financial reporting, which has effected role in enhancing investor confidence in financial statements and supporting their investment decisions.

Hypothesis was achieved by applying the fair value in the research sample (Bank of Baghdad & Gulf Commercial Bank), increased  in level of transparency of the financial statements founded, while the exploratory method used to establish a relationship between the fair value and the level of transparency in the financial statements, and Investors adopt them in making their decisions for investors.

Checklist was distributed to determine the extent to which investors were aware of IFRS`s, including the fair value standard and measurement methods.

Research deducted several results; the most important is that the level of transparency of the financial statements when applying the measurement at fair value is higher than the level of transparency when relying on historical cost measurement.

The fair value is the most effective way to reflect a real economic reality because its application gives a more transparent result, it accurately reflects the financial position of the entity and produces comparable, understandable and more appropriate financial reports, and achieves investors’ preferences and helps them make good decisions.