Study On The Preference Of Fair Value In China

Chinese Ministry of Finance in 2006 formally promulgated the Accounting Standardfor Business Enterprises(ASBE), setting up a ew system of accounting standards,among which the reuse of fair value in ASBE is the highlight. On September 15th,2006, FASB issued No. 157 Notice of Financial Accounting Standards (SFAS No. 157)Fair Value, bringing forward the improving guideline for the use of fair value. Theyear 2007 witnessed the implementation of ASBE system by all Chinese listedcompanies. In September, 2007 the outbreak of the U. S. sub-loan crisis intensifiedand spread throughout the world, re-evoking the heated debate on the disadvantagesand advantages of fair value and the retention or abolition of fair value. No matter it iscoincidental or inevitable the use of fair value in China is closely linked with that inthe United States and other countries on the world, which calls forthe attention andreflection of the fair value among the Chinese accounting academics. Therefore, thisdissertation focuses on the preference of Chinese Legislators and the Executives ofASBE. Then from the point of view of different stakeholders, this paper offers anumber of suggestions to improve the use of fair value in China. The full text isdivided into seven chapters, with each chapter as follows:Chapter 1 introduces the research background of this article, the theoreticalsignificance and application value of the content.Chapter 2 introduces and comments on the normative research and empirical researchon fair value at home and abroad.Chapter 3 introduces the origin of fair value preference, its definitions, classification,related features, affecting factors, measurement and methods of measurementChapter4 introduces the application of a fair value in the United States accountingstandards, the international accounting standards and the Chinese accountingstandards, then measures and analyzes the fair value preference of Chineselegislators.Chapter 5 introduces the origin of the degree of fair value preference, and conductsdescriptive statisticalanalysis on its affecting factors.Chapter 6 introduces the research design, assumptions and variables and explains thetest results and conclusions. Chapter 7 introduces the conclusion of the study, research limitations and futureresearch direction, inspiration and advice.