IMPACT OF FAIR VALUE ON RESULTS ACTIVITY OF THE PRIVATE COMMERCIAL BANKS ((A CASE STUDY OF A SAMPLE OF IRAQ'S COMMERCIAL BANKS))

A ABD AL -HAMEED, SARAH; S.AWAD, SAAD

	IMPACT OF FAIR VALUE ON RESULTS ACTIVITY OF THE PRIVATE COMMERCIAL BANKS ((A CASE STUDY OF A SAMPLE OF IRAQ'S COMMERCIAL BANKS))
AL-TAQANI
Article 1, Volume 26, Issue 4, 2013, Pages 0-0
Authors
SARAH A ABD AL -HAMEED; SAAD S.AWAD
Abstract
The concept of value is important for the developing of accounting measurement for the elements of income and financial position . and value in essence the concept of moral respect to renewal of what deserves thing in terms of amount are the importance , usefulness or self ability is the basis of its value and there are several measures or methods for measurement used for evaluating elements of balance sheet and there is no primary basis used for each element , but there are many numbers of measurement methods currently accepted that the fair value method of accounting measurement for evaluating which assets and liabilities The objectives of this study is to identify ways and considerations of measurement and accounting disclosure using the fair value under accounting standards and their impact on the measurement of performance of banks and certification of the validity and accuracy of the information extracted through the use of fair value measurement and the results of its activity wither profit or loss based on the accounting standards for the testing the assumptions that have been adopted and that –Different results of activity for commercial banks, at the use of fair value measurements by using the traditional measurement, and increased commercial banks' profits by using fair value measurements in the traditional measurement. The purpose of verifying the accuracy of these assumptions this study deals with a sample of same of Iraq's commercial banks for three years to finding out the impact of fair value on the results of the activity of these banks. This study has obtained a set of conclusions that the most important of fair value measurements shows real profits for the banks compared with traditional measurements considering the fact that banking activity depends mainly on investments in the shares of other companies and then the results of income affected by the unstabilised of stock prices of those companies, and lack of recognition of gains and losses on the value of investments makes income figures does not reflect the real result of activity . The study concluded a set of recommendations most notably in the need to adopt international accounting standards for fair value because local banks on the verge of merging with foreign banks so the integration process requires that the system and foundations working together This is done through the use of international accounting standards and informing.

Statistics Article View: 188 PDF Download: 59