A Study On The Effect Of Use Of Fair Value Measurement Attribute Under The New Guidelines

After1970s, with the changes of international accounting environment, the traditionalhistorical cost accounting measurement attributes have gradually exposed their ownshortcomings, which is not to provide more relevant accounting information, so thedemand of changing the measurement properties increases. With the emergence ofderivative financial instruments, fair value measurement attribute came into being.International Accounting Standards Board (IASB) and Financial Accounting StandardsBoard (FASB) also affirmed the status of fair value, which brought the fair value as animportant part of international accounting standards, and it will have a significant impacton the accounting profession and the practitioners.Fair value measurement as an important attribute has experienced twists and turns inthe course of development in China. On January1,2007, China’s new Enterpriseaccounting standards came into effect, and the fair value was put on the agenda again,which became the biggest highlight of the new implementation of the guidelines. Fouryears has passed since the implementation of fair value, and the research on the fair valuemainly focuses on theoretical research, so the research on the results of the use of the fairvalue in this paper has more practical significance.In2008, financial crisis occurred. The international financial community and theprofession engaged in a fierce debate, and both sides refused to give the holders of the term.The financial community believed that the fair value was the culprit of financial crisis, butthe accounting profession gave a strong counterattack. If the research bases on the theorythat the fair value only reflect the truth, and it will have more practical significance.In this paper, with the methods of normative research with comparative analysis andcase study analysis, the paper has the comprehensive evaluation of the use of fair valuefinancial reporting, tax accounting, earnings management, performance evaluation thesefour aspects, since the implementation of new accounting standards, which has both for alloverall analysis of all listed companies and the analysis of specific industries and typicalbusiness case.Most of the data in this paper comes from the listed company’s annual report onjuchao website, and the selected objects of study on financial report analysis results arefrom the Shenzhen Stock Exchange and Shanghai Stock Exchange’s main board class of securities industry companies.Through the study, we find that: the impact of the financial report includes: in thesecurities industry, from2007to2010, Changes in the fair value of shareholders’ equityand operating profit showed the impact of general decline, and the shareholders’ equity hasweak sensitivity to the fair value of equity changes. Operating profit has a strongsensitivity to the changes in fair value. The fair value of individual securities companiesshows different effects of individual differences. Impact on the performance evaluation ofthe fair value of2007-2009on the overall performance of listed companies is notsignificant, and the listed companies showed better growth. The impact of earningsmanagement respectively provides some room for maneuver through case studies fromthree levels to arrive at the fair value of the earnings management. The impact on taxaccounting will not affect the amount of income tax accounting period because of thetemporary difference of fair value, and it only scatters differences and reversal of thedifference resulting from the effects of a period of income tax amount. Finally, this paperputs forward a reasonable and countermeasures on some practical suggestions about theuse of fair value.