China's New Accounting Standards, Fair Value Related To The Application Of Research

Enterprise fair value measurement has always been one of the most challenging issues in the international accounting theory forefront in the recent decades. Because fair value measurement can provide the reality information for investors, it can help investors to make right decision. Now it becomes one of accepted accounting measurement attribute in the developed countries. Now China joins in the World Trade Organization (WTO), in order to adapt to such situation and to promote the development of the socialist market economy, the ministry of finance issued new accounting standards on February 15, 2006. The fair value measurement mode was reintroduced, and came into effect in the range of quoted companies on January 1, 2007. The application of fair value undergoes iterative phase in china. Compared with 1998, the application range becomes wider. What influence will it bring to the financing situation and operating result of enterprise? What question will it occur in the practical application?In such background, this paper deeply analyses the application of fair value in idiographic accounting standard and expatiates the influence of fair value application to enterprise value, operating result, financing situation etc. At the same time, it proposes the reality question and solutions in implementing fair value.Although the application of fair value exists many difficulties in the current economic environment, along with increase of government guidance and knowledge of accountant, development of asset evaluation, the perfection of internal control system, the reliability and maneuverability of fair value will further enhance. The application of fair value will be beneficial to the perfection and development of capital market.