The use of Fair Value in financial reporting has developed a debate about the impact of fair value accounting on Earning Quality. FVA is a market-based measurement. Nevertheless, Fair Value is considered unreliable and often it is subject to managerial discretion, especially when markets are illiquid or inactive. Fair value is based on subjectivity in estimation that allows management opportunities for the exercise of judgments and intentional bias as a result the quality of financial reporting decrease and negatively affects stakeholders' decisions. Management discretion can result in a higher earning quality and in a reduced amount of earning quality.