This study evaluated the impact of the application of fair value accounting (FVA) on the quality of accounting information reported in financial statements from the viewpoint of auditors in Nigeria as one of the important financial statement stakeholder-groups. Data collected through the administration of structured questionnaire on 277 auditors from selected audit firms in Nigeria, were analyzed using descriptive statistics, exploratory factor analysis and one-sample t-test. The results revealed that the application of FVA significantly enhances the qualitative characteristics of accounting information. It further revealed that the influence on the relevance characteristic is the most-pronounced. Moreover, application of FVA is perceived to bolster the fundamental qualities of accounting information more than the enhancing qualities. The study concluded that the application of FVA has a significant impact on the quality of accounting information, and thus recommended the enhanced focus and understanding of FVA through its inculcation in the curriculums of academic and professional accounting programmes to promote its diffusion.