The Extent of Compliance with the Disclosure Requirements for Fair Value Measurement (IFRS-13): A Study on the Annual Reports of Palestinian Corporations (Published)
This is an exploratory study designed to investigate the extent of compliance with the requirements fair value measurement disclosures in the annual reports of the 48 corporates that were listed on the Palestine Exchange (PEX) in 2014, by firstly sketching a guide of best practices and examining the relationship between the disclosure requirements for fair value measurement and the variables which may determine. In order to achieve the objective of our study, we have developed and utilized a disclosure score called unweighted fair value disclosure index (FVDI) to measure the extent of disclosure made by companies in corporate annual reports, and then using a statistical program to run the Correlations test, and Analysis of variance test. This study reports significant differences in levels of disclosures on fair value measurements, as measured by the mean values of the fair value disclosure index in Palestine. The findings show that, there is correlation between the disclosure requirements for fair value measurement and the explanatory variables (the size of the firm, auditor’s type), also there are differences in the level of disclosure requirements for fair value measurement of the firms due to the kind of economic sector. However, that the level of disclosure requirements for fair value measurement evidence a statistically did not significant association with the profitability of the firms.