A Study On The Application Of Fair Value Measurement Attribute In China

Fair value especially present value problem is a difficult problem in accounting field for a long time, and we began to explore and study fair value since 1997. During this period, the application of fair value went through the "introduction, evasive, re-introduction" tortuous process. It was not until February ,2006 that fair value as measurement attribute entered China accounting standards. The fair value research evolves and the scope of its application become more and more broader, for the measurement attribute dominated by historical cost can't reflect the real value of accounting entity fairly, especially the emergence of soft asset like intangible assets and derivative financial instruments which made the adoption of fair value measurement urgent. This paper will set about to explore it from its research background and meaning, then compare the definition of fair value in different country to find out the necessary characteristics for fair value to carry, after that it clarify the relationship between fair value and other measurement attributes, mainly describes the process to estimate fair value using market-based and present value analysis method respectively, analyze the theoretical and realistic foundation of fair value application in china, finally gives some suggestions on keeping away profit manipulation after the using of fair value.The thesis is divided into five chapters and the contents are summarized as follows:Chapter 1, introduction. The chapter introduces the research background, meaning, method, scope, literature summary and innovation and shortcomings of this paper.Chapter 2, the connotation of fair value and its relationships with other measurement attributes. The chapter makes comparison on different connotation of fair value in different country and periods; analyzes the relationships between fair value and other measurement attributes and draw a conclusion that fair value is a comprehensive measurement attribute.Chapter 3, estimation of fair value. This chapter mainly describes the process to estimate fair value using market-based and present value, make comparison and analysis on two basic methods of present value.Chapter 4, theoretical and realistic foundation of the application of fair value measurement attribute in China. The chapter analyzes the necessity of taking fair value as the foundation of measurement from four aspects: accounting object theory,quality requirement of accounting information,income mode,information disclosure and analyze its realistic explication from other four aspects.Chapter 5, analysis of the application of fair value in China. The chapter mainly describes the characteristic of the application of fair value in china; some realistic problems existing in the application of fair value in china and countermeasures; prospect the fair value application in China.