The Study On The Quality Of Accounting Information Under Fair Value Measurements

Fair value measurements have been extensively applied in the US Generally Accepted Accounting Principles and International Financial Reporting Standards. In recent years,FASB and IASB have intensified research on fair value measurements and planned to further expand the scope of applicability of fair value measurements. In February 2006,China's Ministry of Finance released a new system of accounting standards,which incorporates fair value measurements to a certain extent and to a certain degree.A primary aim of this paper is to research how much influence the quality of accounting information by application of the attribute-the fair value in China. Firstly, the paper expatriates theory foundation and computation precondition of fair value. Secondly, the paper discusses influence to relevance, reliability and conservatism by fair value. Bending together regulation of new standard in theory, the article compared the relevance, reliability, conservatism and fair value, based on their differences in accounting objective and qualitative characteristics of accounting information, and discussing fair value's correction function to accounting relevance, reliability and conservatism. On base of these analysis results the paper points out obstacles that the fair value exists at present in our country, and puts forward corresponding measurements.