The Influence Of Fair Value Method To The Listed Banks’ Financial Information

It has been suffered from the twists and turns since the fair value method is used,particularly in our country, form applied to confined and then generalized again. The fairvalue method can stand out from many measurement methods like The Historical CostMethod and The Net Realizable Value, fully prove that the generalize of the fair valuemethod in our country have its historical inevitability, and it is an important sign that oureconomy reach the world. The fair value method has generalized again from the year2007inour country, however, the use of the fair value in many fields is still in initial explorationstage in China, companies keep maintain a cautious attitude to the use of the fair valuemethod. As the time goes on, the progress and improvement of technology, and the process ofinternationalization, the fair value method will have an even broader space for development.The fair value method is mainly used in financial instrument in China’s listed Banks, andit is also used in the items as noble metals and etc. The fair value methods have many traitssuch as the value is fair, the metering is interrelated and so on. These traits make manyfinancial information changes along with the change of fair value in a given period. With theincreasing items of the use of fair value methods in companies, there are two worthy points toexplore the influence on enterprise’s financial data that made by the changes of the fair value,the sensitivity to changes in the fair value of the enterprise’s financial information. In thispaper, the data we use come from China’s listed Banks’ annual report. On the one hand,studied the influence on companies financial information that made by the changes of the fairvalue. On the other hand, analysis the level of sensitivity of financial information when facethe changes in fair value. Analysis the fair value of listed Banks in our country of thedeveloping foreground. This paper use literature analytic method, comparative analysis, chartanalysis form writing idea, and these are also the method to analysis and organization of data.The development of the fair value measuring financial instruments tends to maturity in ourcountry. The fair value measuring financial instruments in listed Banks have an effect onassets, liabilities and net income. Listed bank net profit has increasingly sensitive to thechanges in fair value. Among the listed bank, the gap of the sensitivity coefficient betweenlisted banks has been decreased year by year. The level of sensitivity of equity when face thechanges in fair value have weakened by the strong and leveling out, nonetheless, thesensitivity coefficient in several listed banks have from weak to strong.