Under The New Standards Are Measured At Fair Value On The Study Of The Impact Of Accounting Conservatism

Fair Value is a new hotspot in new accounting standard at present. Accounting Conservatism is one of the qualitative characteristics of accounting information which adopted in long term. The generations of each are closely interrelated with uncertainty. However, their extents of reaction with uncertainty are totally different, thus the information provided on this base differs form each other. The article mainly studies the influence of fair value on accounting conservatism.This article first reviewed relevant literatures, clarified the concept of accounting conservatism, motivation, and the definition of fair value, measurement properties, then through reviewing the relationship between domestic and foreign research scholars, it identified the ideas and perspective in my article; Next the article respectively analysis the impact of fair value to accounting conservatism from three angles (accounting objectives change, uncertainties, practices, treatment); Finally, it proposed the hypothesis based on the results of theoretical analysis ,and reached the conclusions through the models.Based on the above ideas,taking the Shanghai and Shenzhen A share companies as the sample,the essay selected the Basu model to verify the changes in of listed companies in China during the changes after the new accounting standard. Then based on Felham net assets under estimation model-fair value proportion relationship model to verify the impact of fair value to accounting conservatism after the Implementation of new accounting standards.The results of this study showed that:1. Before and after the new accounting standard, the accounting conservatism of China's listed companies generally existed, and in the range of 2007-2009 year, with the downward trend of conservatism. Due to external market factors, the regression model in 2008 year was not significant, but by a reasonable interpretation of analysis it still could inferred the downward trend of conservatism.2. After the promulgation and implementation of new accounting standards, the decline impact of fair value to conservatism was greater, and was the leading important factor in the decline.From this article, we draw preliminary conclusions, after the implementation of new standards information, the conservatism of listed companies in China remained, but with the growth of implementation, the accounting conservatism decreased stability, and the application of fair value measurement was an important factor causing decreased stability .