The Comparison Of Fair Value Between China And Foeign Countries

Since the twenty-first century, along with the Internet as the characteristics of the development of science and technology, the international transnational trade grows rapidly, and at the same time, many Multi-National Corporations are also developping quickly. In this case, the convergence between the countries’ accounting standards also develops comparatively fast. As an international organization which promotes the international convergence of accounting standards, the International Accounting Standards Committee (IASC)is established in1972and so far it has released40core principles, effectively promoting the convergence of the international accounting standards.The international convergence of accounting standards is the development direction of accounting standards. In2002, the FASB and IASB signed a memorandum of understanding, as far as possible to make the SFAS and IAS fully comparable. At the same time, the EU also gradually achieves convergence with international accounting standards. Since January1,2005, the corporations listed in EU have gradually adopted IFRS and given up all kinds of accounting standards EU originally used independently. China, Japan, Australia, Canada and other countries or regions are also gradually adopting the strategy of convergence with international financial reporting standards. We can say that the convergence of accounting standards is the general trend of future accounting standards, and our country has to make our own decisions accordingly.In the process of the international convergence of accounting standards, the most critical thing is the convergence of measurement model. And the increasing use of fair value will be the overall trend In the international process of our accounting standards, the application of fair value has been a more iterative process, but eventually the new accounting standards which was enacted in2006is to determine that the standards of our country is to be convergence with the international accounting principles, and the application of fair value has become the inevitable. However, due to the existence of significant differences in the market environment of our country and other developed countries, so China’s accounting standards in the application of fair value is not in accordance with international financial reporting standards completely. And it becomes one of the main differences between the Chinese accounting standards and international accounting standards. On the basis of a review of the fair value of related research foundation, we discuss the concept of fair value and the basic theoretical analysis of the fair value. And then, we compare the application of fair value in IASB,FASB and China, and with Beichen industry as an example, we expound the reasons of using different measurement model for the same entity.And then we propose the reasons of the differences of the CAS and IAS and put forward the way to make the standards better.