Impact of data transparency and accessibility on the accuracy of Fair Value for financial reporting purpose in the context of information asymmetry

Highest accuracy of Fair Value (FV) for financial reporting purposes, as commanded by Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), is pivotal for financial reporting. Recognizing their impact on financial reporting, the objective of this paper is to investigate the impact of data transparency and accessibility on the accuracy of fair value for financial reporting purposes in the context of information asymmetry. A comprehensive literature review is conducted to assess the research gap by investigating the effects of data transparency and accessibility on FV accuracy in the context of information asymmetry. Recognizing the limitation of its dependence on recently distributed research, not every applicable perspective of FV appraisal might be incorporated. This study endeavors to reach the most accessible information and writing to achieve its objectives. This study finds that FV accuracy is dependent on market information, valuation techniques, and valuer’s competency, and FV can be arrived at more accurately when data and information are more transparent, reliable, and accessible. Accurate FV will ultimately improve the quality of decision-making in investment activities across all sectors. Accordingly, it recommends filling the gap between FV accuracy and data transparency and accessibility as investors demand dependable FV assessment for informed decision-making. To overcome this challenge, it emphasizes the requirement for stakeholders to transparently share information and data through all possible means and make them accessible when required by providing complete insights into ongoing and past tasks as well as financial data.