Fair Value Accounting and the Relevance of Information Supplied in Corporate Reports of Nigerian Firms: A Probit Regression-Based Approach

The influence of fair value accounting in reporting is of concern to users of accounting information. The impact of fair value accounting on the relevance of information supplied in corporate reports of Nigerian firms was investigated in this study. The results of a questionnaire survey of 50 internal auditors in Nigeria were used to generate primary data and the binary probit estimation technique was employed to analyze the data. Fair value accounting significantly impacts company reporting, according to the study. Finally, based on the data, it is stated that the implementation of fair value accounting is more likely to improve corporate reporting quality in Nigerian firms. According to the findings of this study, fair value accounting will aid investors in accurately determining a company's value through improved corporate reporting. Thus, the study recommends that concerns such as fair value measurement and accounting estimates be emphasized in academic and professional accounting programs on corporate reporting to promote its adoption.