The Fair Value Measurement Of Application In China's Financial Institutions

The international accounting Profession has studied on the fair value for a long period and the focus of discussion has changed from "use fair value or not" to "how to use". Since 1970s, the United States generally accepted accounting principles into the notice of fair value, due to the large number of financial derivatives and the consequent production of 1980s of the American outbreak of "savings and loan crisis" prompted the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) believes that fair value accounting is the most relevant measurement attribute, and a lot of promotion of fair value. However, financial institutions and financial supervisory authorities have questioned the reliability of fair value all the time, they believe that the use of fair value may increase the financial condition and operating results of the volatility, thereby affecting the stability of the financial system. Since 2007, the outbreak of the U.S. subprime mortgage crisis make measurement at fair value once again pushed to the cusp, the financial sector to find a scapegoat for the fair value of publicly accused the cause of this financial crisis is the culprit, which caused the accounting profession on the fair value of debates. As the financial crisis first affected by the financial industry, and cause large-scale bank failures, which makes people very concerned about the fair value of financial institutions to apply it.About whether to introduce the fair value measurement, our country has experienced advocate, withdrawal and re-application of three phases, are in the gradual development and market needs, but also because of the order and the international community, China's ministry of finance promulgated in 2006 the new accounting standards for business enterprises, the full implementation of the fair and equitable value measurement model. In the new standard, China's financial institutions imply a new measurement method based on fair value measurement model, however, in 2007 the subprime crisis to accounting fair value measurement on a plate of cold water, the fair and equitable value measurement model is correct or not, whether it really changed back to using the historical cost measurement model, and the measured through the fair value pattern, under the situation of China's financial institutions exactly how to correctly apply? Because our country adopts the fair value measurement of time is very short, still not mature, western developed countries in both market liberalization degree or in the research methods have rich experience, so we need foreign financial institutions, especially developed countries use the advanced experience of the fair value measurement, and notice in the financial crisis in the fair value measurement have exposed shortcomings of the perfect, and make the fair value measurement attribute this to financial institutions in China can be used widely and perfect.Based on the background, this paper firstly review on fair value measurement, including the related literature criterion constituting organizations and many countries well-known experts at home and abroad for the fair value measurement, and the research achievements of fair value and relevant concepts of the relationship between the fair value of the mechanism analysis, and stood in the literal meaning and fair value accounting meanings respectively from the Angle of property right theory, the theory of value, accounting objective theory, the theory of four aspects to the fair value measurement based on this theory expounded that the fair value theory, and then from the fair value measurement model in the present standards to study the application of financial institutions in the accounting practice in the fair value measurement applications related problems, and to conduct a series of related problems on current situation analysis and research the developed western countries adopted the fair value measurement of financial institutions, understand the experience to the fair value measurement of necessity and financial institutions and the fair value measurement of experience, is used to formulate the fair value and perfect relevant external environment for the financial crisis and application of fair value measurement of financial institutions, analyzed the main problems existing in the fair value measurement, this paper probes into the main defects and fair value measurement and financial supervision and financial crises in the background, the fair value measurement will be intensified market panic thorough analysis in three aspects to financial crisis under the fair value of the application of financial institutions are the main problems and disadvantages of exposed, Finally, according to the situation in the fair value of the application of financial institutions, to strengthen its Suggestions from the theoretical research, perfect market conditions, establishing a sound mechanism, the active market from financial institutions to ponder, the governance structure of accounting sincerity from construction to research, from the construction of the asset appraisal industry, can go in our financial institutions to establish a widely adopted in the fair value measurement of the platform.