The Research On The Application Of Fair Value In Accounting And Its Effects On The Protection Of Investors

As an important measurement attribution,the use of fair value in accounting has always been a hotspot both in theory and practice. Even though the use of fair value in accounting has gone through a long time,there still exists a lot of disagreement on its effect on the quality of accounting information. Those disagreement main on how the use of fair value affects the relevance and reliable of the accounting information,those two aspects decide the quality of accounting information on large scale. From the perspective of investor protection,accounting information of high quality can provide the investors with decision-usefulness information,which can help avoid or reduce the loss they may suffer because of the asymmetric information. Therefore, the use of fair value in accounting has important meaning in the protection of investors.This dissertation firstly reviewed the process of the use of fair value both in domestic and abroad,made some literature review in the change of the definition of fair value, the use of fair value in accounting and its effect on the protest of the investors. Based on the literature review,this dissertation analysts the theory of the use of fair value,and probe the content of fair value combining the last definition of fair value and the theory of the effect the use of fair value on the protection of the investor. The third part studied the current situation of the use of fair value,and analysts the difference of the use of fair value in domestic and abroad and its reason. According to the status of the use of fair value, the forth part of this dissertation study the effect of the use of fair value of the protection of the investor combining the study of the fair value which is made by American government agency in 2008. Based on the analysis above, I found that the use of fair value has suffered a tough journey, and fair value itself is making continuous self-improvement and development under the voice of questioning; At the same time, the use of fair value can provide the investors with more decision-making related information, which can better protect the interest of the investor. Therefore, the last part of this dissertation give some advices on how to perfection the use of fair value.