The Research Of Cash Flow Basis Under The Fair Value Accounting Age

With the changing of economic environment, the basis of accounting recognition experienced cash basis, accrual basis to the cash flow basis. Cash basis,which is the embryonic form of cash flow basis, is denied by the appearance of the accrual basis under accountability. With the goal of accounting turns to the decision-making useful concept, the accrual basis shows lots of deficiencies, which leads to the cash flow basis come into being. Cash flow basis succeeds the cash basis and accrual basis critically, cash flow basis under decision-making useful concept requires adopt the fair value measurement attributes.In this paper, by analyzing the fair value accounting on the request to the basis of accounting, the accrual basis in practice has showed so many defects that can not meet the requirement of fair value. Cash flow basis can meet the fair value accounting requests. Therefore, in order to fully adopt the fair value accounting, changes must be made on the existing basis of accounting recognition. The innovation of this article is attempts to analyze the internal unification in theory of cash flow basis and fair value. Cash flow basis based on the events approach, recognize the actual and potential cash flows, fair value attributes based on measurement-oriented, reflected fair value in the financial statements, they unify on the contents of recognition and measurements; cash flow basis accounts earnings according to assets-liabilities approach and all-inclusive income concept, fair value in line with the comprehensive income, they unify on the methods of recognition and measurements; cash flow basis and fair value also unify on the amount of recognition.Finally, this paper analysis a number of issues on conceptual framework of financial accounting based on cash flow basis, including the accounting assumptions under cash flow basis, the requirements of the quality of accounting information, as well as accounting elements under cash flow basis and so on. And then constructs a main conceptual framework for cash flow basis, takes a simple example to illustrate the cash flow basis-fair value attributes model.