Purpose: Understanding the interplay between Fair Value Accounting (FVA) and Earnings Quality (EQ) is not only urgent but also essential for firms striving to navigate today's complex financial environment successfully. FVA serves as a vital tool to accurately value assets and liabilities, ensuring financial stability and enhancing investor confidence by providing stakeholders with transparent and relevant financial information essential for decision-making. Moreover, the quality of earnings, significantly affected by the adoption of fair value practices, directly impacts a company's performance and credibility in the eyes of investors, creditors, and regulators. This study aims to evaluate the impact of FVA on the EQ of the Jordanian banking and real estate sectors and to compare the effects between them. Design/methodology/approach: employs quantitative research techniques to evaluate the impact and relationships between variables. The data includes 47 companies listed on the Amman Stock Exchange (ASE) for the period from 2012 to 2022, analyzed using a model to assess the effect and relationships between independent and dependent variables, with the leverage ratio serving as a moderating variable. The urgent need to incorporate leverage ratios into FVA and EQ assessments is critical for companies seeking to maintain investor confidence, mitigate risks, and enhance their financial strategies in today's dynamic business environment. The data is analyzed using both the income approach (FVANI) and the market approach (FVAMA) to fair value accounting. The effects on EQ are analyzed based on four characteristics: persistence (PR), predictability (PRED), volatility (VOL), and closeness to cash (CTC). Findings: Findings: STATA results showed that FVA positively affected EQ, PR, PRED, and CTC in both the banking and real estate sectors in Jordan. However, the effect of FVA was stronger in the banking sector compared to real estate. The leverage ratios (LEV) moderating effect was found to be positive between FVANI and EQ, as well as VOL among banks. Moreover, LEV moderated the impact of FVANI on EQ and CTC for real estate companies. In the banking sector, LEV's role as a moderator was confirmed in the relationship between FVAMA and both PRED and CTC. Additionally, for real estate companies, LEV's moderating effect was observed between FVAMA and EQ, PR, and VOL. Therefore, the findings should be regarded as viable evidence for account users in Jordan and investors because it offers information on appropriate measurement required to measure the FVA effects on EQ in the Jordanian banking and real estate sectors. Research limitations/implications: This study focused on the The study population includes 15 banks and 32 real estate companies (totaling 517 observations over 11 years) listed on the ASE. The study sample consists of all banking and real estate corporations, and therefore could be generalized to the other contexts. Practical implications: This study offers a number of important theoretical, practical and/or managerial implications. It has developed and tested the integrated model that examines how the results of this research provide insights into the impact of FVA on EQ within Jordan. Originality/value: This study advances the understanding of how FVA impacts AEQ in the unique context of Jordan. It also underscores the roles of the LEV in shaping this relationship. These findings offer practical guidance for companies and suggest avenues for future research to further explore the implications of this study.

A simulator is employed to explore the actual impacts of the upcoming lease accounting standard on the financial statements item, financial risk, and performance ratios, we apply its regulations to the Royal Jordanian Airlines (RJ) financial statements. Capitalization of 30 real operation lease contracts commencing in (2002- 2014) reveal with a magnitude change in assets, lease liabilities, and owners' equity. Since we use real RJ data and depreciate the capitalized asset in a straight line method over lease term , Change in lease liabilities exceeds change on assets over time , thus resulted in a magnitude negative impact on owners' equity over 13 years. Results report a negative impact on four leverage ratios (TD/TA, TD/E, LTD/CE, IC) only NCA/ TA shows a positive change over time. We find aease material negative impact on two profitability ratios (NPM and ROE). EBIT margin and ROCE shows a positive change owing to the fact that we adjust the EBIT by the unrecorded lease interest and adjust the CE by the recorded short term operation lease liabilities, Capitalization shows a negative impact on ROA for the period 200-2007 and a positive impact for the period 2008-2014, since the ROA change depend on the Adjusted EBIT and the Adjusted total asset, TA , also the Adj. EBIT show a magnitude positive change over the period 2008-2014 resulting from the unrecorded liabilities interest , since the operation lease contracts number dramatically increased . Liquidity ratio (CR) current ratio shows a positive change, as no change in current asset with a decrease in current liabilities adjusted by the recorded short term lease asset. In view of the considerable increase in total assets Results reveal with a negative change in asset turn over AT. The significant shift in key financial risk ratios, and the negative change in major financial performance ratios suggest that interested parties "economic decisions" could be affected, therefore the upcoming lease accounting regulation could negatively affect the financial position of the airfreight firms that heavily depend on operation lease in aircraft acquirement. Keywords: simulation, capitalization, financial risk ratios, performance ratios, lease accounting standard