The Research On Measurement Issues Of Fair Value Accounting In Inactive Market Environment

The perfect and complete system of fair value shouldn,t only provide guides for accounting measurement within active market and inactive market respectively,but also consider the docking and transforming accompanying the changing of environments. FAS157and IFRS13series standards have mainly resolved the measurement issues under active market environments,without considering the same issues under inactive market environments and the docking and transforming with active market.The accounting measurement standards under financial crisis is the short way and the partly rebuilding to active markets.It can,t constitute a kind of types independently.The goal of studying is to build the framework under inactive markets,resolving the measuring issues under illiquid,irrational and inactive market environments.The framework can dock and transform with FAS157and IFRS13,contain a complete accounting system of fair value measurement.Firstly,the studying grafts the theoretical foundation for the framework with some economic theories.One is summarizing all kind of theories of value measurement,Upgrading the research to the studying of system of value measurement;The another is combining the Theory of Risk Preference,The Theory of Behaviour Motivation, The Theory of Information Asymmetry, The Theory of Transaction Cost,The Theory of System Migranting,The Theory of Internal Controlling and The Theory of Game with the updating of Technology of fair value and rebuilding the system of fair value.Next,constituting the structure of the framework using comparision.One is building the series of fair value measurements technology borrowing the structure of FAS157and IFRS13;The another one is entering the important systems related with fair value measurement inactive market,for example The simplifying measurement model,The upgrading information quality mechanism,The risk controlling mechanism and The information revealing mechanism into the framework wholly in the studying.The framework consists of fair value measurements technology and fair value measurements system guiding with the goal of fair value.Once again,establishing the system and Mechanism applying the framework to solve the hot and the hard issues of fair vlue measurement in inactive market.One is The simplifying measurement model to reduce the complex;The another is to perfect the Mechanism of fair value measurement,in the same time,obtaining the matching with market and supporting from the systems;The third is the system and Mechanism avoiding the risk of fair value measurement through combing the measurement system with internal controlling.Questionnaire investigation to39listed financial enterprises about internal controlling with hedging risk of fair value,seeking the path of combing risk controlling of financial innovation with internal controlling,risking managing and Corporate governance.The fourth is creating the revealing system and mechanism, Statistical analysis to39listed financial enterprises about revealing through annual report of2011,Establishing the system of internal controlling of fair value measurements, sensitivity analysis and uncertainty analysis.Lastly,Researching the strategy of the practice of the framework in China using the normative and empirical manners.One is economic consequences analysis with accounting standard for business enterprises of2006,ensuring the goals,task, policies ans suggesting;The another is analysis of path of convergence with the framenwork;The third is rebuilding the structure of the framework of fair value measurement in our country referring the framework;The Fourth is pointing out the policy and suggestion to practiceThe original contribution:One is integrating to an uniform market environment about illiquid,irrational and inactive.Which is the opposite or more important position than active market.The framework unites another framework under active market.the two different frameworks consists of an uniform system of accounting,.which can dock and transform under certain conditions;Which is the Comprehensive framework combing the technique with system.The second is establishing all kind of systems and Mechanism,which can resolv all hot and different issues in inactive market,for example, The simplifying measurement model,The upgrading information quality mechanism,The risk controlling mechanism and The information revealing mechanism;The Third is the establishing the framework of fair value measurement in inactive market in our country according the framenwork,pointing out the suggestion of structure of framework,the rebuilding with the basic principal and detailed principal,the path of convergence and matching measures according to the economic consequences analysis with accounting standards for business enterprises of2006.