Research Of The Fair Value Accounting's Impacts On Stakeholders Under The New CAS

In the 1980s, more than 2,000 American financial institutions were in financial trouble because of derivative financial instruments for dealing, but its financial reports showed the company's performance was good. The event set up accounting information for decision-making usefulness of extensive controversy. The president of SEC Charles reminded that the principle of historical cost cannot prevent and handle financial risks and introduced the fair value as a financial instrument measuring property in the first time. However, as the spreading subprime mortgage crisis of the global financial turmoil, the Fare Value was pushed on the tongue. There are kinds of different viewpoints about Fair Value.Widely discussions of fair value measurement call for deep thought. Why Stakeholders concern highly of fair value with discrepant opinion? What are the consequences of fair value measurement for different stakeholders? The paper points out the economic consequences of fair value by analyzing the impact of fair value measurement on financial reports.The paper uses normal research as main methods. At first, the paper introduces the theoretical foundation of fair value measurement and stakeholders. Through discussing the impact of fair value measurement on stakeholders, the paper analyzes key data which is in connection with fair value measurement, of listed banks in annual report of 2007 and 2008. Finally, the paper point out that the fair value property meets the needs of economic development, and which is used to accounting information and improves the transparency of information and policy relevance.