This study examines the impact of applying the fair value model for investment properties, as defined in IAS 40, on the quality of accounting earnings and the effectiveness of electronic accounting information systems. The research adopts a deductive approach and employs an applied case study of the Modern Sewing Company to empirically assess the relationships between valuation methods and earnings quality indicators. The findings indicate that the fair value model has a significant positive effect on the predictive ability of accounting earnings, enhancing decision-usefulness for stakeholders. However, the results reveal negative effects on earnings persistence, income smoothing, and receivables quality, suggesting increased volatility associated with fair value measurement. In addition, the study highlights the critical role of electronic accounting information systems in processing fair value data, emphasizing the need for system modernization to support reliable financial reporting. The study contributes to the literature by providing empirical evidence from a developing economy context and offers practical implications for firms adopting fair value accounting. It recommends improving asset classification practices and aligning accounting systems with international standards to enhance reporting quality and transparency.