Study On The Fair Value Of Financial Assets

In recent years, due to the rapid economic development, the continuous strengthening of international cooperation and coupled with new types of financial instruments emerging, the new accounting standards on financial assets achieve the convergence with that of international accounting standards. However, as an emerging market economics, the development of capital-market has much difference from the Western developed countries. In 2008, the global financial crisis triggered U.S. mortgage crisis has exposed defects of the current accounting standards on financial assets. In this context, studying on fair value of financial assets, finding problems, obtaining the advantages, and reasonably learning from foreign experience, it is an important part of development and improvement of the fair value of financial assets in China.Firstly, this article introduces the research background and significance, the main research contents and methods. Following, it reviews development and the latest improved results of the overseas accounting standards on financial assets. Thirdly, analyze on the value-relevance of financial assets' fair value from the perspective of international and domestic. Next, research the current situation of the financial assets' fair value on the listed companies of Shenzhen Stock Exchange. With the price model and earning model, establish the panel data model and cross-section regression model to test the value-relevance of financial assets' fair value. The major findings of this dissertation are:firstly, financial assets'fair value has increased the correlation between financial assets and value-relevance; secondly, it is different with the performance of the international market that the fair value of financial assets is short of value-relevance in trading market with high-liquidity; thirdly, the historical cost has not completely lost its value relevance; fourthly, investors trust the fair value of financial assets, but also understand the financial assets at fair value affected by economic and other factors, Finally, propose some suggestion to develop and improve our fair value accounting standards of financial assets, such as the development of market environment, the drafting specific operational guidelines.