Conceptual Stability and Digital Homogeneity of Fair Value Measurement

This research aimed to identify the concept of fair value and the conceptual stability in scientific definition, beside identify the digital Homogeneity that resulted from fair value measurement according to IFRS 13 that issued by International Accounting Standards Board(IASB), also, discussing the reality of application of fair value through the empirical study conducted by the researchers, and analyzing the effect of measurement using fair value basis The researchers concluded that there is no conceptual stability in scientific definition, support his opinion by the latest amendments that included in IFRS 13 especially the definition of fair value, this lead to gap in digital Homogeneity relates to items measured by fair value, because of using different approaches, different levels in fair value hierarchy in different markets, the researchers also discover six ratios to analyze the effect of fair value on result of business and its financial position. The researchers recommend the necessity of finalizing the conceptual framework of fair value as a basis of accounting measurement, and setting a code of conduct to the accountants that they determine the fair value, beside, revising IFRS 13 specially matters related to markets, level in fair value hierarchy and fair value measurement approaches, and ensuring the necessity of independency of IASB, and finally, adoption of proposed financial ratios the can be used to analyze the effects of fair value on business result and its financial position.