A Study Of The Performance Of The Fair Value Policy In The Investment Real Estate Accounting Standards

Since September 2007 the Federal Reserve started cutting interest rates, the storm beginning from the United States has evolved into a comprehensive global financial system crisis."Accounting is the beginning of a capital game." Both financial and accounting sectors are concerned about Fair Value Accounting Standards in the crisis. Bankers think that Fair Value Accounting has played the role of adding fuel to the flames in the crisis. The stipulate of Fair Value Measurements made too much of the assets of financial institutions by market value writing-down. This could make the market deep into a vicious circle, which finally made financial crisis even more serious. So they call for repealing or suspending of this guideline. However, accounting sectors think that Fair Value Accounting has nothing to do with this financial crisis. They think that the fair value played a positive role in this financial crisis. Using the fair value model, the accounting Profession exposes the financial asset bubble timely, transparent regulatory and open manner, making financial sector, investors and financial regulatory authorities face and defuse financial risks. At the same time, the investors could comprehend the scale and dynamics of crisis more timely and efficient. To meet the challenge of this crisis, we should make the fair value become an irreplaceable important measurement attributes with improvement in the future.China's new accounting standards about the fair value are still at an early stage. Under the back ground of the fair value measurement coming into the general trend, in this paper, using the Investment Real Estate Accounting Standards as an example, I did research on the fair value accounting policy.The thesis based on the review of China's accounting standards in the design and development, did the comparisons of accounting standards with other international samples, and then according to the listed company's annual report data during the past two years under the implementation of the new guidelines, analysis of the impact of the listed companies by the Investment Real Estate Accounting Standards.At the end of this thesis, it also offers proposals for China's Investment Real Estate Accounting Standards:1. Change the fair value gain or loss to a "non-recurring gains and losses," to avoid companies adjusting the profit by using the maneuverability of the fair value.2. Clear the internal controls and review procedures of the fair value.3. Develop a simple calculation model of the fair value.4. In order to enhance the impartiality and objectivity of the fair value, the country should improve the quality of the information and market prices in the real estate market, and establish a truly unified, sustainable development, real estate market.5. Strengthen the regulation of the fair value measurement and disclosure to improve the reliability of the fair value measurement.6. Intensify the supervision and punishment. Enhance the supervision of intermediaries to assess more reliable value.7. Relevant guidelines should be more perfect, the quality of accounting practitioners is also to be improved.The contribution of the thesis has two. One is analyzing the Investment Real Estate Accounting Standards in the method of integrating theory with empirical evidence, it has a certain practical significance. The other is through a comprehensive study aiming at the investment real estate, it offers suggestion proposals for further improvement of Accounting Standards.This paper just demonstrates the application of the fair value in the Investment Real Estate Standards, so based on this paper, it is not enough to judge the whole influence of the fair value of the business. In addition, due to restrictions on the number of sample companies, the text did not use any statistic model to demonstrate the practice situation of the fair value.