Research On The Way Of Fair Value Information Disclosure

With the development of the world economy and the accelerating pace of financial innovation, accounting environment has undergone tremendous changes. The usefulness of traditional historical cost information in the decision-making is questioned, especially when prices change frequently. In order to improve the quality of accounting information, China has promulgated the new 'Accounting Standards for Business Enterprises' in 2006 which prescribed some items to be measured by fair value. However, in the accounting model that historical cost and fair value use together, the disclosure of fair value information becomes an important issue. What is the fair value information disclosed in financial statements or out of the statements? How to disclose it? The different disclosures of fair value information in the financial reports will have different effects on information users. Therefore, the study on the fair value information disclosure has great realistic significance.This paper analyzes the current situation of China's fair value disclosure and points out the problems. The problems are as follows: the historical cost information and fair value information are disclosed in the same column in balance sheet, which causes the information confusion and affects comparability; statement of owner's equity and profit statement reveal gains and losses together, which affects the integrity of the financial statements and the clarity of accounting information; the fair value disclosure out of the statement is lack of system. On this basis, according to foreign experience and our national condition, this paper proposes the new information disclosure: forming a additional column in the balance sheet to disclose the fair value information, expanding the traditional income statement to reflect the comprehensive income, and adding 'fair value matters' out of the financial statements.Finally, we should improve supporting measures to ensure the implementation, including improving the legal system and focusing on the application of computer technology and strengthening the accountants' follow-up education.