Financial Assets Fair Value To Study The Impacts Of The Listed Company Profits

With the rapid development of economic globalization and China economy, the innovation of the international financial has been deriving large quantities of financial instruments; the gradual improvement of the regulatory regime is increasingly completed. In2006the Ministry of Finance issued the new accounting standards corresponding to the international environment. The reintroduction of fair value measurement has impacted listed companies accounting recognition, measurement and reporting. In addition, the financial assets have changed accounting treatment, which bound to have profits of listed companies as well as the presentation of financial statements to bring the changes and impact. Therefore, the impact of the fair value to the profits is becoming a hot topic.The dissertation reviews the influence on fair value to the profits. Then it makes the following issue to be clear:Whether the comparison of the computation of the fair value with historical coast will bring incremental information; what effects could the fair value measurement about the profit of listed company bring; whether the changes in the fair value and losses and investment income would be the critical factors about the means of influence on profit., and whether these changes in fair values are contained to the degree of influence on corporate profits. Above the specification and empirical research methods, firstly this essay selected the176companies as a sample, based on the establishment of the new and old share holder reconciliation of the companies’data. Through the establishment of a pricing model to the fair value and historical coast, we will get a result that fair value can bring incremental accounting information. Secondly the essay could focus on this incremental information on corporate profits follow-up constitute in the four years. This essay as well determined the43companies as a sample in order to study whether the financial assets would have become an important factor affecting the profit. It is the indispensable key factor in the future considerations of company profits.