Fair Value Accounting And Its Applicatoion Research

Global economic environment has had a series of significant and the profound transformation at the end of 20th century,which has brought the huge impact and the challenge on the accounting.Along with the continuous development of economy,the massive emergence of financial instruments,the historical costs measurement method has become increasingly unable to meet the user's financial information needs.The fluctuation and the risk of economy in our society require the method of accounting measurement to change from the historical costs to the more related value measurement method.Fair value has always been the hot topic in the international accountant's profession Since the 1980s,and remarkable research results have been obtained about it until now.The new accounting standards system has been issued in China in 2006,to which fair value measurement method has been introduced.This is in line with the trend of research on this subject in international accountant profession,and it also adapts to the economic development in our country.The main target of this thesis is about how to make full use of research result on this topic around the world,to guide and evaluate its application and research in our country.The application of fair value is to realize the potential gains and losses,but it does not increase the value of the enterprise,which have a tremendous impact on performance of the company.The corporate profits will increase or decline dramatically when the market price surge or fall,but the corporate performance is not the same when using different accounting standards.In this thesis I reviewed the history of application of fair value and analyze profoundly measurement and recognition of fair value of in our country.I also discussed how the fair value influence the finance statements and the management behavior in accordance with the 2007 annual report of listed company.