Meta-synthesis of fair value accounting effects

Abstract

The paper is an attempt to bring out meta-synthesis of the fair value accounting (FVA) and its effect based on a critical synthesis of literature of the fair value measurements (FVM) pertaining to the analysis of results from 42 FVA empirical studies between 2005 and 2016. The findings reflect that the faithful representation of class of assets on the financial statements can only be achieved by additional disclosure requirements under the fair value mechanism by using level 3 with caution by firms in developed capital markets and emerging countries. The post-amelioration of the FVA by the two boards, IASB and FASB; more empirical studies must to be carried out to determine the value relevance of financial instruments/other financial assets on the financial statements on using FVA by firms.