Abstract:
The purpose of this study is to contribute to the adequacy of fair value
accounting in making financial information appropriate and more able to
rationalize the decision to grant credit in Algerian commercial banks and the
degree of endorsement by the decision-makers to apply fair value accounting and
the extent to which commercial banks can The application of historical cost as a
basis for measurement and the application of fair value accounting, which leads to
making financial statements more capable of influencing the decision approving
the granting of credit, and identifying the constraints faced by credit-granting
decision makers in commercial banks when analyzing financial items Measured in
accordance with fair value accounting for credit applicants. The following problem
has been developed: how does adopting fair value affect the decision to direct bank
credit?.
After analyzing the questionnaire information, the study found the following
results: The quality of fair value accounting is more conducive to making financial
information more reliable and time-saving in demonstrating the handling of
financial events and processes to be appropriate and closer to reality and credible.
The study recommends that fair value be applied as a basis for accounting
measurement in commercial banks to improve the quality of the decision to grant
credit
