Research On Fair Value Measurement And Its Application

The development of economic and accounting has proven that more fast economy develops, accounting is more important. Accounting information for economic development or hinder the ability become stronger by the economic development. In the long history of the accounting process, the accounting measurement is always at the core. Accounting measurement mode is not focused on accounting units of measurement but on measurement attribute choice. As the market economy and the knowledge economy development, the historical cost accounting for the cost of the past, ignores the future value accounting information and it could not reflect changes timely and comprehensively in the economic environment, and has become less and less relevant with economic decision-making, historical cost accounting which receives more and more criticism, the World the boundaries of the accounting fraud prompt more people to think about and accelerate accounting transformation. The fair value measurement which reflects timely and fully the current economic environment and future changes emerged. Fair value has been always a very hot and difficult problem with challenge nearly 10 years among the forefront of international accounting.This paper uses a standardized methodology, which has mainly charts and comparative analysis in order to study related issues about fair value measurement from theory to practical application. This paper summarized as follows: Chapter I first introduces the research background and significance of the fair value, the domestic and foreign research were reviewed and a brief account of the paper's methodology and the major problems solved. Chapter II expounds the meaning of fair value, and its theoretical basis. Chapter III analyzes the basis and current value calculating of the fair value measurement, discoveries and proofs inevitability and importance of the fair value in accounting and economic development. Chapter IV probes influence factors of fair value measurement in application, including the scope of application and the market environment and several difficult problems. Chapter V mainly proposes corresponding recommendations to the related issues of fair value which is used in our country. Chapter VI summarizes the full text and makes a prospect to fair value in China foreground.This paper demonstrated following points through the analysis of the system: Fair value information not only has a strong correlation, but there is strong reliability; Fair value measurement and profit controlling is not necessarily linked; Using fair value the demand to the market environment is not high; The fair value of liabilities through market interest rates to reflect the creditability of the insolvent entity. These help Fair value develop better and faster in China and cleared away the obstacles to understanding.It is general trend that fair value has fully applied in the international, but our fair value measurement issue on the theoretical study and practice is still relatively stagnant, which makes the application of fair value has an important theoretical and practical significance.