Challenges and prospects of applying fair value accounting in the Algerian banking sector

Abstract

This study examines the integration of fair value as an accounting measurement basis within the Algerian financial system, particularly in the banking sector. It addresses the limitations of historical cost and highlights the increasing importance of fair value, as supported by international standard-setters such as IASB and FASB. The research analyzes Algeria’s current financial reporting practices and emphasizes the need for continuous updates to ensure alignment with global standards. In a context of economic volatility, fair value is proposed as a comprehensive solution to measurement challenges. The study recommends adapting Algeria’s accounting framework to prevent financial isolation and support its integration into the international financial environment.