A Study On Measurement And The Using Of Fair Value

For a long time, historical cost has been the main measurement mode, but with the development of economy, especially lots of new trade and transactions come forth, it is difficult for historical cost to cope with the situation gradually. To keep the information's quality, all the standard-making institutions try to measure all the items by fair value. Inspect of many difficulties and resistances, the research on fair value is progressing. Problems and obstructions which come into being endlessly make the measurement of fair value become one of the hottest questions of the modern financial accounting, using fair value comprehensively is the tendency, and the research on it in our country lags as well practical operation. So there are deep theoretical and practical significance in studying on fair value measurement attribute.Using the knowledge and theory of economics and accounting, This article starts with several hot academic problems on fair value. On the basic of analyzing the concept of fair value, the relationship between fair value and other measures and so on, it analyses the relations between fair value and present value with the international study on present value. This paper discusses the application of fair value into two parts, the international application and the domestic application. Especially the amend and application in the new accounting standards is the focus of this article. And in the end, the article makes some suggestions and some expectation on the using of fair value, according to the present market environment in China.