Research On Theory And Application In China Of Fair Value

With development of the market economy and the knowledge-based economy, the historical cost has been suffering from increasing criticism. In this process, Fair value, which can be fully reflect changes of the future economic environment, came into being and has been applying widely. Since 1980s, accounting field paid more and more attention on researches of fair value, and has achieved remarkable results. With developments of global economic integration and international coordination of accounting, our extensive use of fair value will be unavoidable. How to guide and evaluate research and application of fair value by full use of international research results in China, is the research objective of this dissertation.The dissertation can be divided into four chapters:Chapter I: Introduction introduces the research background, motivations, the main content, article framework and major contributions and shortcomings.Chapter II: Review the researches on Fair Value, classify and summarize the domestic and foreign researches.Chapter III: Analysis on the origin and application of Fair Value. Firstly, this part explores theoretical basis of Fair Value from the resource-based theory and Information Economics. Then it analyses the feasibility of fair value such as the reliability,cost-benefit, and presents these problems are not inherent errors of fair value which will be gradually resolved with the environment changes. Finally this chapter expounds on the rectification to the existing historical cost-based financial conceptual framework by fair value.Chapter IV: Fair value applications in accounting standards. Firstly, it lists the fair value applications in America,IASC and other countries, reviews three phrases of fair value applications briefly in China, then compares the differences of fair value application between new issued accounting standards and old accounting standards, and comments on the former. Finally this chapter brings forward some suggestions about how to apply Fair Value in China.The main contributions of this dissertation are: Firstly, the dissertation sums up the current scattered research results, which may contribute to the further study of fair value. Secondly, the dissertation evaluates our progress and shortcomings of fair value in combination with our 2006 new issued accounting standards.