Research On The Reliability And Value Relevance Of Fair Value Accounting

Measuremengt perspective advocates strengthening the availability of accounting informationg to make useful decision by improving the method of measurement,and the oboject of accounting information is helping to make useful decisiong. Fair value measurement standards adapted to the times and the need of economic development,as the one looking into the future and facing the 21 century, Fair value has been widely accepted by United States and some other market economy developed countries,and these countries have used fair value as the most important even the preferred measure,thus, compared to the measurement model based on historical cost, the advantage of fair value is information disclosure,and the basic purpose of popularizing and applying of value accounting is to improve the reliability and the value relevance of accounting information,so that the enterprise asset price and the return can be more realistic reflecting,and provide investors with more accounting information that canhelp them to make economic decisions. In 2006, in order to convergence with the international accounting standards, China announced her new set of financial accounting standards, and in 2007 carries on the comprehensive promotion and application formally.When fair-value accounting is widely spread all over the world, many scholars questioned to the reliability of fair value based o n the characteristics and valuation method of fair value. In 2007,fair value accounting was seriously blamed by Financial institutions and some Political organizations during the current global financial crisis arisen from the US mortgage-backed securities problem,and they always belived the use of the fair-value measurement model worsen the financial crisis.At the same time, in domestic,the popularizing and applying value accounting has just started,and the large gap still exists between China's capital market and relatively mature market of international, also lacks of experience in accounting practice field.Under such situation, research in the reliability and the value correlation of fair value in China's capital market is very necessary.To solve this problem, the paper conducts empirical research on the basis of theoretical analysis and the main conclusions obtained as follows:①Reference to the analysis of the price model ,there was a significant positive correlation between the stock price of A shares financial company and fair value of per net asset.so ,the use of fair value accounting information enhance the ability of interpretation ,andplayed a positive role in improve the quality of accounting information.②Reference to the analysis of the price model and revenue model,The fair value hierarchy will possibly have significant effects on reliability of the fair value,and accounting measurement error has caused by different levels,so fair value with different inputs levels will given different reference weight by investors In three levels of fair value measurement,the uncertainty and variability of fair value measurement is owing to the estimation error of levelⅡ,Ⅲ,relative value of relevance of level 1 is significantly higher than other lever,so it is even more reliable.③In practice, the fair value metric is decision useful ,the use of fair value accounting in the new accounting standards has improved the value-relevance of accounting information in some degree,so,the questioned and accused to fair value accounting by some social organizations and individuals is incorrect. In the empirical test,only we shall distinguish different level,can a perfect conclusion be expected in a relevance study on fair value measurement.