Research On Fair Value Measurement Of Accounting Standard For Investment Property And Value Relevance Of Accounting Information

In accounting,the fair value measurement of accounting standard for investmentproperty is still on the tentative stage.Since it was first adopted by an enterprise in2006in the accounting of an investment property project,the fair value has beenshowing its increasing impact on valuing the investment property and the quality ofaccounting information.It is greatly necessary to measure the relation between the fairvalue measurement of investment property and the value relevance of accountinginformation on the basis of analyzing data and samples by empirical study.The paperdelete takes the companies which apply fair value measures in its investment propertyafter the implementation of Accounting Standard for Business Enterprises No.3(CAS3)-Investment Property as samples,studies the impact of the value relevance ofaccounting information based on the annual delete and the semi-annual financialstatements between2007and2010delete.The findings show that both the net assetsand the fair value changes possess the incremental value relevance.The mainconclusion is that the fair value measurement in investment property helps to promotethe value relevance of accounting information.The research provides not onlyempirical analysis for the standard-setting institution in improving the accountingstandard,but also more data analysis for the application of the fair value inaccounting.