Catálogo de Investigaciones | 2010-2011

Catálogo de Investigaciones | Pontificia Universidad Católica de Puerto Rico 57 The impact of the fair value accounting paradigm and global financial reporting quality: financial statements’ relevance and reliability Certainly with today’s technology, information communication, and global competition, a financial accounting system that was created approximately 100 years ago is the challenge for enterprises’ financial reporting in a business environment that is global. The investors and creditors require reliable information of companies’ performance and financial position. The main purpose of the financial reporting is to provide decision makers with useful information. The Financial Accounting Concept Statement No 2: Qualitative Characteristics Accounting Information 2008 amended identifies the qualities that make information useful in decision making process. The primary decision-specific qualities of the accounting information are relevance and reliability. The main objective of this accounting research was to determine the Impact of Fair Value Accounting Paradigm and the global financial reporting quality considering the issue of the Financial Statements on reliability and relevance applying the fair value accounting market approach. This research tried to determine the fair value accounting as a measurement that provides the investors and creditors the financial information they need for decision making purposes and the relevance and reliability. The methodology used was an exploratory correlative study ad- ministered with a questionnaire to determine the relationship of relevance and reliability and FVA applying the market approach. The sample used were the Colegio of CPAs in Puerto Rico working in the Business Enterprises of San Juan, Mayaguez and Ponce. The findings were that FVA applying market approach has a significant relationship with the primary accounting qualities of relevance and reliability and with the adequate new financial requirements for Financial Statements and disclosures (FASB’s Accounting Standard Codification 820 formerly referred as SFAS157) provides valuable financial information. Elizabeth serrano mentor DRA. IVELIT IRIZARRY PAGÁN administración de empresas +