Abstract:
The aim of this research is to discover the opinions of the Lebanese banks regarding the
relevance of the fair value method. Furthermore, this study will provide an additional insight
into the suitability of the fair value measurement in a developing economy like that of
Lebanon, and in an absence of an active financial market. For the benefit of this deductive
research, a quantitative methodology was solely employed. Using a questionnaire of 14
questions measured with a Likert Scale (pre-coded questions), and a sample of 61 Lebanese
Banks, the data was collected through a combination of some self-administered surveys, and
some in person questionnaire-style interviews. The collected data was subjected to statistical
tests using SPSS software. The main results showed that Lebanese banks consider the fair
value measurement under IFRS 13 relevant compared to the traditional historical cost
method. Nevertheless, the relevance of fair value in times of financial turbulence differs from
its relevance in times of financial stability. Bearing in mind the limitedness of research on
this topic in Lebanon, this paper offers a significant contribution to the field. Upcoming
studies will build on this analysis with the help of a larger sample. In addition, Lebanese
banks will become more aware about the importance of the switch to the fair value method
compared to the historical cost, and will seek to enhance their maturity level in this vein and
to imitate international banks’ financial disclosures.
