The article explores how fair value accounting is perceived in Nigeria. Financial auditors were surveyed, and the data was analyzed using the Z Score method. The study found that financial statements prepared using fair value accounting are more relevant than those using historical cost accounting. However, auditors in Nigeria have low knowledge about fair value accounting. Fair value accounting presents more technical challenges for auditors compared to historical cost accounting. The study suggests limiting fair values to assets and liabilities with active markets, providing more training for auditors on fair value accounting, and including fair value accounting in accounting education.