The Analysis On The Influences To Fair Value As Measure Attributes To The Financial Statements Of Listed Companies

Since 1980s, fair value has been one of the recent focus and difficulty in international accounting field, during which fair valve measurement is the most. In 2006, the Ministry of Finance issued new Accounting Standards for Business Enterprise, of which fair value measurement is made as one of measurement attributes. In its 17 specific standards,fair value is used to varying degrees. All these reflect that our accounting standards suit the development of the market economy and convergence with the international practices. Without active market which is essential for use of fair value, fair value can't be used.The purpose of this paper is to discuss the effect which the fair value measurement brings on listed companies after the first-time application of fair valve. With the issue of new accounting standards of business enterprise, it's sure that our financial practice will be affected deeply. We should pay more attentions to the influence of fair value measurement. With the further development of market economy and appearance of all kinds of financial instruments and products, fair value will become widely used. Listed companies and users of financial statements are urgent to know what effects it will bring to use fair value.Under this background, this article was put forward to analyze the influence of fair value on listed companies'financial condition. It mainly collects, summarizes and analyzes financial dates. Beginning with 2006 Annual Report, accompanied by 2007 semi-annual report, the author analyze the effects in terms of net assets and income. The article includes five parts. Its main contents generalize as follows:Introduction: It introduces the achievement already got in fair value by IASB and FASB. The meaning and method of study about this paper are also included.Part one: the definition, characteristics and measurement method are introduces.Part two: the application condition of fair value is elaborated.Part three: Based on financial data from Shenzhen Stock Exchange, on behalf of investors, the author first analyzes from different aspects the total effect of fair value for listed company. And then, take a certain company as example to specify the effects on financial condition of fair value. By studying the application of fair value in ASBE, we are in hope of disclosing the possible impact for listed companies and investors.