The Information Content Of Variation Of Assets Fair Value

Fair Value is used in both basic accounting principles and specify principles of newly issued China GAAP. And the newly issued China GAAP provided material and inspection for Fair Value Researching Work. According to this situation,the writer reviewed the relevant research across the world, and introduce the theory of information content, theory of property, theory of worth, theory of accounting objective and accounting measurement to systematic discuss the supporting theory that, Fair Value measurement basis implies information content, and then analysis the applying situation of Fair Value measurement basis. Upon this, 5 hypotheses raised and 3 models were set up to evaluate the applying effects of Fair Value measurement, and whether the applying of Fair Value could improve the quality of accounting information.The main contribution of this paper including followings: Raise the 5 theory supporting that applying Fair Value of Assets implies information content. Verified the information content and addition of information content, and verified the depress impact of Fair Value measurement for profit management.The above research implies that the enlarge using of the Fair Value in newly GAAP meets the international situation and development of domical economy, the information content of Fair Value of Assets improves the usefulness of accounting information for decision.