Research On The Fair Value Measurement Of The Financial Instruments In The Background Of The Financial Crisis

Since 2008, the global financial crisis come of the sub-credit in USA hits the world economy. In this crisis, several banks complained that on basis of the financial instruments standards, they need rapidly reflect the asset prices fluctuate in the financial statements which due to the decline of market prices.The decrease leads to the mortgage assets value decreased vastly, it maybe exacerbated or enlarge the financial crisis. Financial instruments standards and fair value measurement become the focus once again.This paper researches and analysis the theory system on the fair value, compares analysis of the IASB and the FASB's definition of fair value, points out that the fair value of the connotation and extension of the definition of uncertainty hindered the practice in the role of guidance. Application of fair value is the product of decision-usefulness view, when the fair value of the loss of its "fairness", in its decision-making on the usefulness was been doubted.The concept's uncertainty reduced the value of its practice, so the specific measurement of stratification seems particularly important. In this paper, by studying the guidelines, comparing to the fair value of FASB and IASB, as well as different hierarchical IASB amendments to the latest level of disclosure and discussion of the fair value of options, such as impairment in the context of the financial crisis and frequent revisions concern were summarized and analysised.Recent amendments to the direction of financial instruments reflected in the amendments to the main re-classification to make some use of fair value of financial instruments classified as costs to re-measurement; relaxation impairment for granting a certain degree of autonomy of the body of the report so that it can choose whether or not impairment; relaxation measurement and valuation of the level of choice, not an active market for the main tools to determine their own choices based on market quotes or valuation models.Finally, we discussed the criteria for the development of financial instruments on China's guidelines for the development, and the fair value of our measurement system, put forward some proposals on the framework establishment of our measurement system.