Implementation of Fair Value Accounting on Agency Problem Contract Mudharaba in Islamic Finance

The purpose of this study is to analyze the effect of fair values to agency problem of Mudharabah. Samples include principal (bank) and agent. The data was collected by using a questionnaire. This research represents the empirical test which used sensus sampling. The method of data analysis used in this study is using software SPSS version 17. The paper finds that that fair value has a siginificant effect to values agency problem of Mudharaba in financial syariah institution. This paper provides useful information about agency problems of mudharaba and its solution with using fair value methods.