Research On The Measurements Of Fair Value And Its Application In China

With the development of the economic, it is a challenge for original cost which can't match the accounting report users' requirements. In the new accounting standards which issued in 2006,fair value measurement has been used in the accounting calculation. It is not only in accordance with the mainstream of the International accounting development, but also fit to the economics.In this paper, we look back the fair value development in China and introduce how to use it in new accounting standard. Take the "Real Property Investment", "Financial Instruments" as examples, we discuss the fair value impacts on the financial and management performance.This paper starts with the theoretical analysis ranging from the systematic introduction of concepts and characters of fair value and the necessity of fair value measurement and caparison with measurement attributes to overall views of supporting and doubting the application of the fair value. After the retrospect of the history of application in China, in chapter four and chapter five, the paper intends to respectively analyze the applications in real property investments and financial tools. By the case of Baiyun Shan and Ping An, china, it focuses on the feasibility of application of fair value in China and impacts on financial reports. In the last part, the paper turns to analyze the present problems and possible solutions.In this paper, to our acknowledgement, on the one side, the application of fair value in China can reflect the financial status and earning capacity of companies relatively fairly and completely so as to meet the demands of relevant decision-makers. On the other side, due to its complexity and uncertainty concerning the application, it becomes somewhat tough task for many financial reports' users. At the same time, how to cope with the fluctuating influence on the financial figures caused by the changing of fair value has been brought into our further research.Furthermore, how to cope with the profit adjusting for some public companies by taking the advantage of the movements of fair value is a complicated task, except for the introduction of the total gain and loss sheet and demand of the more and efficient information disclose, there still existing the appeal for the efforts by authority's supervisor and improvement of the concerned personnel.The main tasks of the paper are as follows: ①The paper offers great emphasis on the real application of fair value in China, particularly the feasibility of application on real property investment and financial tools, thus provide the vision of valuing the measurement of fair value.②Take the task of improving the quality of financial report into consideration, the paper tries to propose the necessity of the total gin and loss sheet and appeals to provide more information disclosures in today's balance sheet and income statement.③With case study, it tends to analyze the fluctuation impacts on financial situation in public companies, and here forth the barriers and challenges for the financial report users.