A Study On Fair Value Measurement And Dynamic Reflection Accounting

Fair value measurement has been used in the accounting area for more than 50 years, though the real popularity is in the 1980s after the emergence of derivative financial instruments. Its cause is the price changes of goods (assets). Derivative financial instruments enlarge such price changes to the limits, so that historical-cost-accounting model's shortcomings are exposed completely. For this reason, the fair value is considered the most relevant or even the only relevant measurement attribute for derivative. FASB's goal of fair value measurement is to start from the derivative financial instruments, then gradually extend to all assets and liabilities, and ultimately the establishment of fair-value-accounting model to replace the historical-cost-accounting model.Fair-value-accounting model is a difficult point in the accounting research nowadays. The contemporary theory, which is established on the basis of historical cost, with the accounting essences of information systems and accounting aims of decision-making usefulness, is incompatible with the fair value measurement basis. Researches on fair value accounting break through the contemporary accounting theories, to build a new, scientific system of accounting theory, from an accounting point of view of primitive to the guidance the fair value accounting research and practice. In this paper, from an accounting basic theory point of view, it deeply analyses the development of the traditional accounting context, the establishment background and the defects of historical accounting, the impact and challenges on the traditional accounting theory, the fair value measurement attributes, and the valuation of assets and determination of income under the fair value accounting. The whole article is divided into seven major parts:Chapter 1, Introduction. An overview of the research projects and research significance ,the main research methods used in the article, the main contents and ideas, the research framework of the thesis and summarizing the main purpose of this study and the lack of innovation. Chapter 2, Summary of Fair Value Accounting. A brief review of the fair value practice of the United States and its evolution history; the systematic analysis and evaluation of the FASB's fair value measurement's current research and problems.Chapter 3, the characteristics of fair value accounting and to reflect on contemporary accounting theory. Analyze the conflicts of fair value accounting and contemporary accounting theory, in order to criticize and reflect the contemporary accounting theory.Chapter 4, the reconstruction of contemporary accounting theory. Based on the economic theory, proposed reconstruction of the ideas and framework of the contemporary accounting system from the viewpoint of the nature and objectives of accounting.Chapter 5, the innovative research on fair value accounting. Systematically analyzing the concept, the nature, the measurement attribute of fair value, and the reflection perspective, the measurement range, the measurement focus, the measurement techniques and the pattern of income determination of fair value accounting.Chapter 6, a criticism to the Empirical Tests of the relevancy of the fair value information which is based on the Effective Market Theory. It argues that the information relevancy of the fair value is not an empirical test issues, an issue of the reliability authentication, instead.In this paper ,The main innovation are as follows:First, in chapter 3 of this article to the fair value of the basic characteristics of accounting-based, more in-depth analysis of contemporary accounting theory and the conflict in the fair value accounting, which contemporary system of accounting theory and critical reflection of the system that must be re - structure of contemporary accounting theory; and then in chapter 4 of this article, based on fair value accounting, a reconstruction of the contemporary system of accounting theory and the framework of the basic ideas;Second, in chapter 5 of this article on fair value accounting for the innovative research, the system of the definition of fair value, the nature of the measurement properties of a reflection of fair value accounting concept, the focus of measurement, measurement range, measurement technology, the fair value accounting models to determine the content of the proceeds to the fundamental goal of accounting is to determine the accuracy of earnings, accounting is the focus of measurement is based on a breakthrough in contemporary accounting theory, put forward a series of innovative point of view;Third, in chapter 6 of this article, the fair value of the empirical examination of accounting information for a preliminary criticism, that the fair value accounting information relevant test is meaningless; fair value is the reliability of accounting information (authenticity) of the authentication issues, rather than the question of the relevance of the test.In this paper, the main deficiencies manifested in two aspects:First, the contemporary system of accounting theory-building has gone through the process of around 40 years to form a complete system, the breakthrough of the traditional theory can not be achieved overnight, and even take up the habit of thinking of the impact, so that this article of contemporary accounting the theory of reflection and criticism, is still in the preliminary exploration stage, the need for further in-depth study; At the same time, the fair value accounting on the basis of reconstruction of contemporary accounting theory, this article only made a tentative exploration, we need to further in-depth study;The second is this article believe that the fair value of the relevance of accounting information rather than empirical testing, but the reliability of (authenticity) of the verification problem. Information to reflect the fair value of the empirical relevance of test systems to reflect the needs of efficient market theory, and accounting information and the relationship between prices, the paper has failed to conduct in-depth research; and verify the reliability of fair value should be how to solve the problem This article also failed to propose effective solutions.The existence of the present study the above-mentioned problems and shortcomings, I will study in the future to explore further and try to solve.