| Ministry of Finance issues the new accounting standards system including1basicstandard and38specific guideline on2007,the most changes is that the new accountingstandards have many parts use fair value measurements carefully.This measure made chineseaccounting standards changed and have a lot of development on the relevance of theinformation in the accounting. The outbreak of the U.S. subprime mortgage crisis has led tothe global financial crisis in2008,and pushed the fair value measurements to the peak.Peoplethink that the fair value measurements should be responsible for subprime mortgage crisis,who generate a debate on whether to adopt the fair value measurement.This paper rearchedthe impact of the fair value of the earnings quality based on fair value.Firstly,this departure have the theoretical analysis of earnings quality which introducedseveral assets measured at fair value. With the analysis of the assets or liabilities measured atfair value,rearching how to impact on earnings quality.Secondly,this paper selected financialdata of listed companies in China beyond years2007to2011.Then using the classic Pricemodel and revenue model to make empirical analysis of the relationship of earnings qualityand the fair value by SPSS18.0.This paper make changes in fair values included in theexplanatory variables,making the correction of the previous model,making the comparison ofthe fair value measurement model and the original old model,and the last making empiricalanalysis of the relationship of earnings quality and the fair value.This article’s final conclusion is substantially consistent with the hypothesis. By theempirical results,this paper verify the science of the fair value as an explanatoryvariable.And,the fair value and earnings quality have the value relevance.The end, after acomplete theoretical and empirical analysis,this paper proposed some recommendations in theevaluation of earnings quality and some future outlook. |
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