The Research On The Application Of Fair Value In China

Historical cost has been the main mode measurement, but with the knowledge economy and information society's development. The time value effect of assets and liabilities is more and more obvious. Historical cost to reflect the book value of assets and liabilities after a serious departure from the market value, can not meet the requirements of decision makers. The fair value is the value of assets or liabilities at present, and therefore a higher relevant than the Historical cost. More and more accounting rules require disclosure in accordance with recognized at fair value and fair value information, the fair value application Comprehensive has been the general trend.February 15,2006, the new accounting standards promulgated. The highlight is large scale introduction of the fair value measurement. There are several concrete standards introduce fair value measurement in different extent, such as financial assets, non-monetary transactions, assets less value, debt restructuring, business combination, etc. However, the fair value measurement was confronted with the financial crisis at the same time. Although fair value continues to be the better choice compared with other measurement attributes, but the financial crisis is a test to it. That indicating there are still some problems needed to be further revised and improved in the process of its application.The market environment of China is not mature enough compare with international market. And the fair value measurement experienced impact of the financial crisis. The application of fair value in China will be confronted with face many problems. At present, the new accounting standards have been implemented for three years. How the application of the fair value? And are there problems exist in the process of application?This article begins with researc(?) of the fair value both at home and abroad. It analyzes the related theories and the strengths and weaknesses of fair value measurement. It also summarizes and analyzes the various criteria about the fair value in new accounting standards. And then, it analyzes disclosure of information about the fair value according to 2009 annual report of China's Listed Companies. It founds some problems in the application of fair value, such as the application is limited and information disclosure about fair value is inadequate, and finds reasons for these problems. Finally, it offers relevant measures to improve the application of fair value.This thesis is divided into following parts:The first part is a preface. It introduces research background, research meaning, research condition inside and outside, research method and the structure and limitation of this thesis.The second part mainly states basic theories of fair value. It introduces the definition of fair value, correlation and reliability of fair value and relationships between the fair value and the other measurement modes.The third part introduces the methods to obtain fair value and the advantages and disadvantages of fair value.The fourth part analyzes the using of fair value in china's accounting standards.The fifth part analyzes the application of fair value in Listed Companies in China. Study the problems of using fair value and their reasons.The sixth part makes some suggestions about the using of fair value in China.The seventh part is the conclusion of this thesis, and point the deficiency of this thesis.