The Application Of Fair Value Calculation On Financial Instrument And Its Influence Analysis

Fair value is being considered as a challenging yet popular issue, with the development of financial instruments, more and more attention has been paid to fair value.Fair value is gradually be respected globally for its advantages. Fair value has been introduced in many financial instruments in developed countries, it is considered as the optimal measurement attribute.In the CAS released by the Ministry of finance, the introduction of fair value is one of the highlights.The Comprehensive application of fair value in accounting standards of financial instruments shows the convergence between China and global standard..Tha application of fair value measurement aroused a lot of controversy in the2007financial crsis, even experts in financial world hold that fair value is the one to be blamed.Although China has not been severely striked in the finacial crisis, it is a wake-up call.The study on fair value in China is relatively lagged off, it has not been long since fair value was applied in financial instruments. Thus this article insists that the study of the application of fair value in financial instruments is an issue that be worthy of study.This article first summarize the theories regarding financial instruments, accounting measurements and fair value, based on which it discusses the necessity of fair value application on financial instruments.In the following chapters, standards in applying fair value in financial instruments are discussed, including the FASB and IASB accounting standards. Furthermore, the author analysis the problems and influences that may appear in the application of fair value. All the A shares listing Corporation in2007-2010and35listing financial enterprises are being analysised. For the reason that PINGAN Group holds a significant difference among the listing enterprises, a case study is introduced. Based on the above studies, relevent suggestions are proposed.