Fair Value In Our Application

With the economic and social development, enterprises facing external environment are increasing uncertainty, the traditional historical cost measurement model provided by the lack of relevance of accounting information, can't meet the timeliness and fairness of the request and often leads to information users making mistakes. Fair value for the present, future-oriented properties provides more relevant accounting information and get better reflect the financial position and operating results, so that investors can be more aware of the true business situation in their favor to make an ideal investment decisions. Therefore, the fair value is the theory and practice research focus problem of the home and abroad. The breaking out of the U.S "credit and savings crisis" vigorously promoted the application of fair value in the late 1980s. In the beginning of 1990s,the United States first pulled the fair value into the financial instruments accounting standards, the international Financial Reporting Standards also successively used the fair value in a series of criteria. Fair Value was recognized and utilized in a growing number of countries and regions. So far, the fair value accounting standards have been in the international and U.S. financial accounting standards have been widely used. February 15,2006, China's Ministry of Finance issued the "Accounting Standards", including a basic standard and 38 specific accounting standards and application guidelines, in which 22 of 39 in accounting standards related to fair value. The promulgation of new accounting standards introduced fair value measurement in the context of international convergence and in a certain degree and under certain conditions. However, Fair value measurement attribute is the product of social economic development and the progress of accounting theory and technology, it has been the focus of the debates of theorists and practitioners since its emergency. And the international financial crisis of 2008 has intensified this debate.Based on this background, the paper studies the application of fair value measurement attribute on the bases of the study results of domestic and international scholars.this paper reviews the fair value on the basic concepts and theories and the application status of at home and abroad, and analyses the practical application of the fair value of Younger in capital markets. After research, I believe that the application process of the fair value in China has still many problems, such as the degree of China's market is not high, accountant is not very high quality, the defects of the Accounting Standards of fair value, the fair value valuation techniques is not perfect, and make the application of fair value not eventually reach the desired results. Thus, finally, research the application of fair value and analysis shortcomings of using the fair value in China. Through learning from foreign advanced theory research results, come up with corresponding countermeasures and make the fair value measurement attribute to better applications,and make it play advantage in the future.