The Research On The Uncertainty Of Fair Value Accounting

Fair value accounting is a landmark change implemented by financial accounting, so as to adapt the ever-growing uncertainty within environment. Based on virtual transactions, value and present value, fair value accounting has been awarded much more uncertainty than history cost accounting. This feature is just its advantage. It is just with its own uncertainty that fair value accounting adapt the uncertainty of accounting environment, thus demonstrating very strong adaptability and vitality. As accounting and auditing are closely related, the uncertainty of fair value accounting has greatly changed the traditional accounting, meanwhile impacted the current CPA auditing mode and nature. With a systematic study of this effect, it is possible to update existing auditing theory and practice, thus audit fair value effectively.The thesis firstly inspects the economic environment and analyzes the fair value from valuation perspective and contractual perspective. Through this, it finds both actual and theoretical roots for the uncertainty of fair value. Then, it gets the content of uncertainty from the evolution of fair value's definition and analyzes the uncertainty within recognition and measurement specifically. Finally, based on previous study, it studies the advance of CPA auditing orientation and expansion of CPA auditing function initiated by uncertainty of fair value accounting.The thesis states that: First, uncertainty of fair value accounting has its unique meaning, that is, with merge of result rationality and procedural rationality, accounting information gets closer to the real economy. Fair value accounting has uncertainty does not mean that it is unreliable. On the contrary, this is a demonstration of strong adaptability. Second, constraints of reality result in excess uncertainty in fair value accounting, threatening the'true and fair'nature. With the audit quality and efficiency contradiction intensified, innovation for risk-oriented auditing is accelerated. Under the guidance of risk management and system theory, auditing has achieved further innovations. The risk-management-based CPA auditing will be finally set up. Third, as fair value accounting supports risk management behavior and reflects the fulfillment of risk management obligation, the accountability's expansion to risk management is possible. Based on this, the CPA auditing has the function of indirectly controlling risk management.