The Discussion Of Fair Value And Conservatism

For a long time, there has existed dispute on measuring principle in Accountant academic circles.There has existed a divergence in how to Compare Conservatism and fair value. In 2008, USA broke out economic crisis which initiated the international crisis. many person censures that fair value lead to wide fluctuation in manage achievement. They think that fair value is able to overestimate enterprise value, caters to bubble economy, it is not conservative, the crime culprit of this financial crisis. At the same time, on October 3, 2008, U.S. Congress announced 2008 emergent economic stability proposed laws; giving USA securities administration commission the right to suspend using the measurement of fair value, at the same time, required the USA dealing in securities committee USA to deciding canceling or suspending the measurement of fair value or not within the 90 day. From this, in analyzing and discussing sound about financial crisis, fair value faced more and more criticism.In fact, since 1960 when fair value was applied to measuring principle, the debate and question on fair value was never stop. Especially since February 15, 2006 when fair value measurement was used in the new accounting standard. The massive scholars have conducted the related research to the fair value. Also they submitted a little suggestion on how to use fair value better.But most of research is about whether fair value is fit to our country, the correlativity analyses about fair value, and the assessment technology of fair value. Seldom person carry out systematic research on Conservatism of fair value. For this reason, after carrying out systematic research on listed company's annals data combining with the new accountant criterion. I analyze the effect to Conservatism which is produced by the application of fair value from financial instrument, investment real estate and Debt re-organized. Besides, I analyze the reason. And therefore has proposed the author's suggestion on improving the Conservatism of fair value.Through studying, the conclusion and innovation of this paper is as follows:1. The application of fair value in the new accounting standard affect the conservatism of accounting information to a certain extent.2. There has existed conflict between conservatism and fair value in possibility.3. The author has proposed recommendations on improving the conservatism of fair value. The author points out; the following approach is the key to improving the application of fair value: (1) ascertaining the order between conservatism and fair value rationally; (2) Perfecting the assessment technology of fair value; (3) Perfecting the revealing system of fair value.