Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.5, 2016 14 The Importance of Fair Value Accounting to Information Quality on Financial Statements (Field Study of Jordanian Commercial Banks) Dr. Talal A. Al-Kassar 1* Zaid O. Dannoun 2* 1.Associate Professor, Department of Accounting, Faculty of Economics and Administrative Sciences, Zarqa University, P.O. Box 132222, Zarqa 13110, Jordan 2. MSc Accounting, PhD Student at Western Sydney University, Sydney – Australia, Parramatta NSW 2150 Abstract The study aimed to identify the importance of the application of fair value accounting on the quality of financial statements to Jordanian commercial banks information. How is expand of the application of accounting fair value to the latest accounting standards used. To achieve this goal the researchers develop a questionnaire for that. Main findings of this study; the study showed that the more the quality of accounting information elements affected at fair value are appropriate. It was found through a field study that there is a significant impact of the application of fair value accounting and the appropriateness of the accounting information contained in the financial statements of commercial banks listed in ASE. One of the main recommendations of the study are: to listed in ASE commercial banks focus on the appropriateness of accounting information to investors and decision makers because of the impact on the decisions of investors and senior management in making investment decisions and administrative rational. In addition, when the issuance of the financial statements of commercial banks should be these lists are able to give useful and relevant information to help shareholders and investors make appropriate investment decisions. The commercial banks commitment to accounting and financial standards in the preparation of its financial statements because it is considered essentially very important to show the characteristics and quality of accounting information to the financial statements are appropriate and reliable, and committed bank provisions and laws set by the Central Bank of Jordan. Keywords: Fair value accounting, Quality of information, Jordanian commercial banks. 1. Introduction Accountants play an important role in the accounting measurement process when evaluating the assets and liabilities in the preparation of financial statements for banks. As these financial statements will be controlled and supervised by the Central Bank in line with the public interest and the economic plans and objectives of the State. Thus, the choice of accounting measurement method clearly reflected in the four financial statements process (income statement, balance sheet cash flow statement, statement of changes in equity) This means that the bank's commitment to using the appropriate method and followed by the central bank during the assets and liabilities measurement process. (1) Financial statements help managers to provide information to assess the facility's ability to generate cash flow. It provide information on available sources of funds and how to use these funds to provide information on cash flows (such as loans to and from the facility, angel investments, distributions), and assists in the periodic measurement of income for the enterprise and thus managerial decision-making governance. In today's business, environment as volatile and changing environment so the measurement at fair value accounting provides greater transparency and fairness and appropriateness compared to historical cost.(2) The interest in the assets and liabilities measured at the fair value is to give a lot of the relevant investor information which helps in making appropriate investment decisions., It has to be when providing accounting information to visualize this information, and the reality of the Bank's financial appropriately and reliable. The measurement process seek to the protection of investors in the banking market and the creation of markets that are fair and transparent. (3) The financial statements are prepared in accordance with fair value accounting achieved a major benefit to investors. In order to assess their investments and the development of future expectations, and to take appropriate economic decisions. The investors are looking to financial information from large global investment perspective, and for the reason it is important to use acceptable accounting standards generally accepted at the international level in preparation. Then they work to protect investors and provides all dealers have full transparency on an equal footing. It is an important tool for attracting investments too. Accounting measurement using the fair value process that requires keep up with the needs of users of financial statements in the industrial and technological development. It emergence of global companies and the opening of global markets what is known as globalization, has led to increased demand for financial information that are high quality and in order to make sound economic decisions(9). The accounting information quality are the characteristics that must be provided by the financial