The Effect of Accounting Conservatism and its Impacts on the fair Value of the Corporation

This study mainly aims to elaborate the impact of the conservatism accounting on the fair value accounting. Therefore, we are motivated to shed light on the concept of accounting conservatism and fair value in financial accounting. Second goal is to illustrate the main characteristics of accounting conservatism and fair value. Third goal is to explain the impact of the accounting conservatism on the fair value. This study attempts to investigate whether the accounting conservatism is related to firms' fair value and their financial decisions. We intend to use the descriptive approach in order to achieve the objectives of the study, to review the relevant literature on conservatism accounting and fair value, and to test the validity of the formulated hypotheses. The descriptive approach is reliable in this type of research, and the design of the questionnaire will be included in the study as the main adaptable component dependent to this methodology. Certainly, we have a set of variables: the reliability of accounting conservatism, the relevance of accounting information, and the benefits to fair value.