Application Research On Fair Value Measurement Of Investment Property

In 2006, in order to meet the needs of economic development the new accounting standards pulled out Investment properties from the fixed assets and intangible assets,accounted separately, and introduced advanced fair value model for subsequent measurement of investment properties. Cost model has the with advantage of high reliability,but the fair value model can improve the relevance and consistency of financial information.Chose which of model to measure investment properties is a cause for concern.In the continuous improvement of the current market environment in China, the real estate market is growing rapidly. The fair value measurement of investment properties can be a more realistic value to reflect the assets of enterprises, improve the financial situation of enterprises, raise the quality of financial report information, coordinate difference of Chinese accounting standards with international accounting practices, adapt to the company’s future development trend of economy. In 2014, the introduction of new accounting standards of the fair value, which made the fair value measurement more practical and feasible in the situation of China’s market economy, and provided a theoretical reference and technical support for measurement of investment properties. But nine years since the implementation of the new guidelines, the vast majority of listed companies still choose the cost model of investment properties, only a few companies choose the fair value measurement model.Therefore,study use of the fair value measurement model in the investment properties is very necessary.The article researches investment properties using the fair value model on the basis of the related theories of fair value of investment property, combining normative research and case studies and comparative research.First, the article reviews the basic and related theories of the fair value of investment properties, Systematically cards the theoretical fair value hierarchy and the fair valuevaluation techniques; elaborates accounting goal theory and the theory of comprehensive income,which is the important theoretical basis of investment properties subsequent measurement model selection; compares Chinese accounting standards with International accounting practices from recognition, measurement to disclosure,which lies theoretical foundation for the later improvement of investment property accounting standards.Secondly, combining the latest listed companies statistical data which hold investment properties, the article analyzes the current using situation of the fair value model of investment properties in China. It summarizes the basic condition of the number of regional distribution, industry distribution, the determination of the fair value and the disclosure of information, combined with a number of listed companies financial data, analyzes financial indicators and affirms the advantages of the fair value measurement model such as affecting profit or loss, improving the capital structure of enterprises, helping enterprises to financing and so on; and delves into the factors of the investment properties using the fair value model.Finally,the article puts forward four advises to improve the investment properties using the fair value:improve corporate accounting standards, encourage companies to choose the fair value; establish and improve Chinese investment properties price market system and assessment market; improve the tax policy; improve the overall quality of corporate accounting staffs and strengthen enterprise internal control.Through the study of investment property using the fair value model, in order to guide enterprises to actively adopt fair value model, and the fair value model can be expected to gradually promote the use in the enterprise.