Abstract
This study investigated the impact of fair value accounting on earnings quality of selected banks
in Nigeria. It examined how fair value adoption influences earnings quality by analyzing data from
eight commercial banks from 2013 to 2023. The dependent variable, earnings quality, was
measured using earnings predictability, while the independent variables include fair value
accounting (through other comprehensive income, net operating income, the logarithm of total
asset values, and leverage). Using ex-post facto research design and panel data regression
analysis, the study finds evidence that all independent variables fair value accounting significantly
affect earnings quality. The study recommends that bank management should consider market
conditions and economic implications when adopting fair value accounting. Additionally,
financial statement regulators should establish conditions that support the effective application of
fair value accounting to avoid impairing earnings quality.