Research Of Fair Value's Application

Recently,discussion on fair value in international accounting field is very hot.At the same time,they have got a lot of important results.FASB has announced fas157—Fair Value Measurement in 2006,indicating that fair value has entered reality from theory.They have already stopped discussing whether applying fair value in practice or not,while they have started to research how to apply it.However,the research of fair value in our country has been falling behind comparatively.Under the consistence of world economy and harmonization of international accounting standards,fair value can't be avoided in China.New accounting standards established by the ministry of finance of our country in 2006 indicate this point properly.The obvious characteristic of new standards is the application of fair value.As new standards putting into effect,it is urgent to reinforce theory studying.This paper applies norm studies mainly,with analyzing cases in several parts.The purpose of this paper lies in demonstrating that fair value has superiority in theory and this superiority is changing to reality.Fair value has becoming main accounting measurement attribute in international accounting standards instead of historical cost.This tendency is irresistible,and China is also not exceptional.Although fair value had been used as the means to create mendacious accounting information in order to cheat the users in our country in history, through analyzing phenomenon we could find that the problem is process,not fair value itself. This paper makes some suggestions on the using of fair value,according to the present market environment in China.The suggestions include these aspects:deepen theory studying;Structure policy and procedure of fair value's application;perfect the outside guarantee;strengthen the inside construction.