The Research About The Use Of The Fair Value In The Context Of The Financial Crisis

The global financial crisis caused by the U.S. subprime mortgage crisis, are still affecting byall aspects of the international political and economic life. Its impact, the length of time, spread ofthe wide range, have long been surprised, as a result, it forces individuals to make a profounddiscussion on the financial crisis and the spread of deep reasons. Fair value seems to play a negativerole; therefore, it naturally became the central point. The financial sector and politics are targetingon the fair value measurement, which is accused by the side effects of its financial crisis, while theaccounting sector justifies for fair value that it reflects the change in the economy itself is theadvantage transparently and accurately. Consequently, it should not bear responsibility for thefinancial crisis.In this paper, the analysis of background and reasons for the financial crisis believes that fairvalue cannot be in charge of financial crises. However, the fair value and the financial crisis areindeed inextricably linked to reflect rapid changes in the market. It enables investors to becomecautious in the case of the economic downturn. It is a blow to the confidence of economic actorsand has shaken the fragile market order. Then, any kind of measurement attribute cannot be perfect,fair value is the same. By analyzing the exposed defects of fair value, combined with China’s newaccounting standards on fair value measurement attributes of research applications, it focuses on theuse of fair value on three areas which are real estate investment, non-monetary assets exchange anddebt restructuring, analyses the lack usage of fair value at this stage, and makes some suggestionsfor it.To sum up, the paper indicates that in the current economic development period, the applicationof fair value is the general trend. We should not be confined to irrational elements of fair value;thereby future economic accounting measurement modes should be focused. To build up aenvironment for advantages of fair value, especially the status quo of China’s prudent and rationaluse of fair value is suitable to the rapid development of China’s securities market, China’sintegration into the international accounting and pave the way to become a economic power.