A Research On The Value-Relevance Of Fair Value Based The New Accounting Standards

From 1990s, fair value has evoked widespread discussion in developed countries such as USA. At present, Both Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) are transferring from historical cost accounting to fair value accounting in making accounting standards. It is no doubt that such a transfer has exerted a significant influence on international financial accounting theory and practice.With the development of capital market and the enhancement of the dispersing degree of the stockholders'rights, in order to strengthen harmonization and convergence between Chinese Accounting Standards and International Financial Reporting Standards, our country's New Accounting Standards promulgated in 2006 has widely introduced the fair value concept. However, our country has been quite cautious to the exertion of fair value all the time, and there is lack of related experience in the practice field. Under such situation, we need to discuss the suitability and the implementation effect of fair value in our country.Under the background, this paper conducts investigation by theoretical analy and empirical research and the main conclusions are as follows: Findings from price model and earnings model indicate that after the use of fair value, accounting date has a better explanatory power to share price, in other words, the use of fair value in the new accounting standards has improved the value-relevance of accounting information in some degree; and fair value has incremental value-relevance as a whole; The results of the supplement examination using the reconciled statement of differences in shareholders'equity further suggest the use of fair value in the new accounting standards has enhanced the value-relevance of accounting information.These findings can not only effectively eliminate people's anxiety to the zigzag utilization of fair value in our country, but also provide support in the view of empirical research to the standards'constitutors. So the results of this paper can impel the widespread application in some degree. However, the standards are only technique criterions producing accounting information, and there are a lot of problems in the practice. Therefore, I put forward some corresponding policy proposals on how to effectively implement the measurement pattern of fair value in our country at the end of this paper.