A Study On The Application Of Fair Value Measurement Attribute

As a new measurement attribute, fair value has aroused extensive attention since the date of its birth. It is always one of the most challenging hot and hard issues in the frontier of the international accounting. With the development of market economy, both Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) are transferring from historical cost accounting to fair value accounting in accounting standards setting. However, the application of fair value twists through the development, so does China.On 15 February 2006, the Ministry of Finance (MOF) of China issued a set of new Accounting Standards for Business Enterprises (the New Accounting Standards), which adopted fair value measurement attribute on a large scale. There is no doubt that the introduction of the requirement of fair value measurement is one of the key features of the New Accounting Standards. But the application effect of fair value remains to be tested in practice. The dissertation focuses on the application of fair value under this background of above. Guiding and evaluating the research and application of fair value, on the basis of the reality of our own country, by learning from overseas and domestic related research findings, is the main objective of this dissertation.Along with the history evolution of the fair value, this paper reviews the phases for the application of fair value in the US GAAP. Secondly, it reviews three phases of fair value applications briefly in China. Then on the basis of using normative research, it analyses the difficulty and obstacles in the application of fair value in China via a series of case studies. This is the main innovation of the dissertation. Fair value measurement attribute is widely used in measuring financial instruments. Because of the lack of theoretical research and market imperfections, there is a lot problem in the application of fair value in financial instruments. So is the performance evaluation. At last, some suggestions are provided for applying fair value in China.