| Fair value is an accounting expression on value in economics, and is an embodiment of the present value concept which reflects the essential characteristics of accounting elements; and it has a profound theoretical basis. The use of Fair value is consistent with the objectives of the present value, and the trend of accounting theory development. However, fair value accounting estimates has great uncertainty and is complex, especially when there are not observable inputs. Hence, in order to decrease the risks in the estimated result about fair value, accountants should use accounting professional judgments properly when estimating fair value.First, this paper has stated the meaning of fair value, accounting estimates, fair value accounting estimates and accounting professional judgments based on previous studies; and identified the relationship between the fair value accounting estimates and accounting professional judgment. Second, this paper has introduced the international advanced fair value concepts; and on the basis of these concepts, it has studied how to make accounting professional judgments in fair value accounting estimates to meet the object of fair value measurement, and creatively summarized the significant risks which might exist in the processes of estimating and disclosing fair value. Finally, this paper has proposed the way to improve the quality of the accounting professional judgments in fair value estimates, for example, to strengthen the fair value of theoretical research, to improve the fair value accounting standards, and to establish an internal control system to assess, identify and respond to the risks associated with the accounting professional judgments.In a word, this study will improve accountants'ability of making appropriate judgments in fair value judgments estimates, and the quality of accounting information, and promote the full application of fair value. Also, it will contribute to the theoretical research of fair value and the improvement of fair value accounting standards. The results of this study will have some practical significance on continuous and full convergence between Chinese Accounting Standards and International Accounting Standards. |
