Analysis On The Influence Of The Application Of The Fair Value To The Financial Statements Of Listed Banks In China

During the course of the original introduction of fair value to its limited use followed by its cautious applications of new accounting standards, fair value has caught special attention, which means that our accounting rules are meeting with the international norms. It is only 12 years since fair value was introduced into our country, so its theory hasn't been well developed. Besides, under the condition that the principles and the methods regulated by the accounting standards will influence the annual report of the listed companies, the information users like investors or potential investors are required to make right decisions. On the ground that the application of fair value influences financing business most, banking business is chosen as a research subject to analyze whether the application of fair value will influence financial report of banking business and the degree of its influence.This essay explains the theory basis of fair value by using comprehensive income theory, clean surplus theory and accounting objectives theory on the basis of literature review. This essay takes 14 listed banks as research sample and applies descriptive statistical methods on related data of annual report to emphasize the influence aroused by application of fair value on shareholders'equity in balance sheet and net profit in income statement. Generally speaking, the financial report of banking business does not fluctuate with the application of fair value; however, it will cause a great effect on individual bank. Besides, this essay also put forward that the regulation of tax laws will create an opportunity for banks to modify its financial report from the aspect of application of fair value on income tax.This essay analyzes the current situation of domestic and overseas'research on the fair value by using the method of literature, explains the influence of fair value introduced carefully after the publication of new accounting standards on financial report of listed banks in china. It is expected that this essay will help investors and potential investors make right decisions.