Limitations Of Financial Reports Of Listed Companies In China In The Fair Value Measurement Attribute Study

The article discussed the historical inevitability of Fair value accounting measurement from the beginning to application and analyzed deeply the inherent defect of it by researching Accounting measurement attribute.The Listed Companies in China adopted Fair value accounting measurement attribute to set financial statements in 2007 for the first time,and the article creatively made use of the data in the financial statements given by the listed companies to analyze the data in the financial statements from different industry in 2007,using CITIC Securities Co.,Ltd.in Financial industry and Qingdao Haier Co.,Ltd.in manufacturing industry as an example.Still the article explained that the use of fair value accounting measurement attribute has different effort in the financial statements in different industries.Financial reports in 2007 showed:the profitability and asset management capabilities of CITIC Securities Co.,Ltd.raised more than 400%compared with last year.But relevant financial data of Qingdao Haier Co.,Ltd.only had little change.The main reason is the use of Fair value measurement attribute.Nowadays China's economic environment is not yet mature,accounting staff is not high quality,the subjectivity of fair value is strong and related party transactions effects the fair price, which make limitations in the use of the fair value measurement attribute.Fair value measurement should be improved according to following aspects:firstly strengthen theoretical research of the fair value and establish the guideline of fair value;secondly perfect the market conditions of fair value;thirdly strengthen vocational and moral education and improve professional quality of the financial staff;fourthly smooth the asset evaluation process to strengthen the building of assets assessment;lastly improve the supporting construction of audit.