Fair Value Research After Financial Crisis

A financial crisis spreads across the world in 2008, which brings about catastrophic consequence. In order to avoid the recurrence of similar financial crisis; people begin to look for its root. During this process,"fair value"gradually comes into people's sight, then the global news media, politicians, bankers and financial scholars and so on make a deep discussion about its role in this financial crisis. Is it the"culprit"or"scapegoat"?This essay begins from the debate at home and abroad whether the"fair value"should exists or not. Then we introduce the development process of fair value measurement, analyze comparatively its advantage and disadvantage, and clearly define the necessity of using it. Third, we make a research of the cause of financial crisis and the defect of fair value measurement. What's more, we emphasize it's the financial crisis that triggers the revelation of the defect of air value measurement rather than the air value measurement boosts the production of financial crisis. Fourth, the fair value is full of opportunities and challenge through the reflection of financial crisis. Fifth, we return to the practical problem, analyze the motivation, current situation, development of fair value in china. Then, according to the community's concern about fair value measurement, we make some recommendation for the development of fair value from the point of view of accounting standards setting body. At last, we conclude that the fair value measurement should be improved and not be denied, even more it should not be treated as the scapegoat.