The Evaluation of the Reality of Applying Fair Value Accounting in Commercial Banks

Empirical study on Algerian Commercial Banks

  • Faris Benidir University of El hadj Lakhdar, Batna –Algeria
  • Mohamed Zergoune University of Kasdi Merbah, Ouargla –Algeria
Keywords: Fair Value, International Accounting Standards, Quality Characteristics of Accounting information, Accounting Measurement, Financial Accounting System


The study aims to identify the degree to which Algerian commercial banks rely on the fair value model in the accounting assessment process. To achieve the purpose of the study, a questionnaire is used to collect data, which is analysed using SPSS packages. The results of the study show that Algerian Commercial banks do not use the fair value model in accounting valuation. Results show also that the Algerian accounting environment is not suitable for the application of fair value because of some obstacles and challenges mainly the lack of readiness of the Algerian financial market.


Download data is not yet available.


Achour Katouche (2011), The Algerian Financial Accounting System: Its General Framework, Its Implications and Implications for Its Application, The International Conference on the Financial Accounting System in the Face of International Accounting Standards (IAS / IFRS) and International Standards of Auditing (ISA): Challenge, University of Blida, December 13-14.

Amani Ibrahim Arida (2017), The Impact of The Fair Value on The Financial Performance in Jordanian Commercial Banks, Master Thesis in Accounting, Middle East University, Jordan.

Balour Soliman (2014). The motives and effects of the transition to the new financial accounting system in Algeria, Roa Iktissadia Review, Volume 04, Issue 06, University of Hama Lakhdar, El-Oued, Algeria, p 201-214.

Buxani Rashid, Okil Nassima, Al-Orabi Hamzah (2010), the principle of historical cost between criticism and support in light of the orientation of international accounting standards towards a fair Market value, The International Conference scientific on the new accounting and financial system in light of international accounting standards (experiences, applications and prospects) University Center in Oued Algeria, on January 17 and 18.

Fella Hamdi, Naglaa Nobli (2012), The Use of Fair Value to Achieve the Requirements of Corporate Governance Principles, The National Forum on Corporate Governance as a Mechanism to Reduce Financial and Administrative Corruption, University of Mohamed Khidir, Biskra, Algeria, on 06-07 May 2012.

Ghassan Mustafa Ahmed Al-Qudah (2013), Fair Value Accounting between Innocence and Accusation in the Global Financial Crisis, The Arab Journal of Administrative and Economic Studies, Issue 1, p 7-25.

Hawass Salah (2008), The New Approach to International Financial Reporting Standards, PhD thesis, Faculty of Economic Sciences and Management Sciences, University of Algiers.

Houari Meraj, Hadidi Adam (2014), The role of accounting measurement and disclosure at fair value in enhancing the quality of accounting information and the obstacles to its application in the accounting environment of Algeria with reference to the Algerian commercial banks, journal of law and humanities sciences- - Economic Issue 18, University of Djelfa, April, p .: 243 -263.

Ibrahim Abdul Musa Al-Sabry, Zaid Ayed Mardan (2012), The fair value and its using effects on the financil performance indications, AL GHAREE for Economics and Administration Sciences, Volume 8, Issue 25, P 225-248.

Jamil Al-Najjar (2013), The Impact of Applying Fair Value Accounting on the Reliability and Appropriateness of Financial Statements Information Issued by the Palestinian Corporations: An Empirical Study from the Viewpoint of Auditors and Financial Managers, Jordan Journal of Business Administration, Vol 9, Issue 3, p 465-493.

Jaouhdou Reda, Hamdi Jalila Iman (2013), the effects of applying the new financial accounting system on the tax system and the efforts made to adapt it, the National Conference on the Reality and Prospects of the Financial Accounting System in Small and Medium Enterprises in Algeria, El-Oued University, 05/06 may.

Safi Fallouh, Isa Hashim Hassan (2011), Fair value accounting of insurance companies (Applied study), Tishreen University Journal for Research and Scientific Studies -Economic and Legal Sciences Series Vol. (33) No. (1), p 127-142.

The People's Democratic Republic of Algeria (2009), Ministry of Finance, Decision of Rajab 23, 1429 corresponding to July 26, 2008 specifying the rules for evaluation and accounting, the content and presentation of the financial statements, the code of accounts and the rules for their functioning, Official Journal, No. 19, March 25, 2009.

The People's Democratic Republic of Algeria (2010), Ministry of Finance, Regulation No. 08-09 on the rules for the evaluation and accounting registration of financial instruments by banks and financial institutions, Official Journal No. 14, 25 February 2010.

Tigawi Al-Arabi (2011), the new Algerian accounting system between the requirements of conformity with international accounting standards and the challenges of implementation with the Algerian environment, the international conference on: the financial accounting system in the face of international accounting standards (IAS / IFRS) and international auditing standards (ISA): the challenge, University Blida, December 13-14.

Tsaedit Boussabeen (2017), Financial instruments and the problem of applying fair value in the light of SCF and IAS / IFRS, Economic Development Review, Hamma Lakhdar Eloued University, Algeria, Issue 4, p 278-291.

Walid Al Tayeb Omar Khaled (2016), The impact of fair value accounting on the behavior and trends of profit management in the banking sector in Sudan, Arab Journal of Sciences & Research Publishing Vol. (02) No. (05), p 255-273.

Yamen Khalil Al-Zoghbi (2005), Fair-Market Value Based Measurement and Its Importance for The Jordan Industrial Corporations Companies Listed in Amman Stock Exchange (A Field Study), Master Thesis in Accounting, Yarmouk University, Jordan.

Yasser Ahmed Al-Jarf (2017), The Effect of Fair Value Accounting on the Accuracy of accounting forecasts –A Theoretical and Practical Study, Journal of Accounting and Auditing - AUJAA, Faculty of Commerce, Beni Suef University, Vol 5, Issue 1, p 341-390.

Zuhair . K . Yassin (2010), Accounting Measurement Between Historical Cost and Fair Value, AL-Mansour Journal / No.14/ Special Issue /( Part Two), p 151-165.

How to Cite
Benidir , F., & Zergoune , M. (2021). The Evaluation of the Reality of Applying Fair Value Accounting in Commercial Banks: Empirical study on Algerian Commercial Banks . Roa Iktissadia Review, 11(1), 617-634. Retrieved from