Research On Environmental Assets And Environmental Liabilities Accounting Based On Fair Value

Ecological civilization construction is an indispensable part of Chinese overallapproach according to the report at18thParty Congress. Environmental accountingplays an important role in economic management and environment protection. Theliterture on environmental accounting in China is mainly about information disclosureand environmental costs. Environmental assets and environmental liabilities, theessential elements of environmental accounting, are seldom studied, especially theirmeasurement prolems, thus impeding the development of environmental accounting.Fair value is based on value and present value, the information is more relevant andfaithfully represented. With the release of Accounting Standard for BusinessEnterprises No.39Fair Value Measurement, research on environmental assets andenvironmental liabilities based on fair value is not only necessary, but also feasible.This paper combines fair value theory with environmental value, sustainabledevelopment and decision usefulness theory, and then comprehensively studiesenvironmental assets and environmental liabilities based on fair value from aspects oftheir definition, recognition, measurement, display and disclosure. The mainconclusions are as follows: firstly, fair value can better reflect environmental value infinancial reports; it accords with sustainable development and enhances the quality ofenvironmental information. Secondly，the concept of environmental assets shouldextend to natural resources and ecological assets; the main environmental liabilitiesshould be the potential ones; the measurement should always reflect current marketexpectations from the aspect of market participants. Finally, despite difficulties inpracticing environmental accounting with fair value, policies can be adopted toalleviate the problems, such as promoting fair transactions of natural resources anddeveloping environmental valuation business.The perspective and research content of this paper are up-to-date. The findingswill contribute to ecological construction and accelerate the development of fair valueand environmental accounting.