Researches On Investment Property Fair Value Accounting Model Of Financial Street Holdings Co.,Ltd.

Compared with the cost accounting model, fair value accounting model can reflectthe true value of the investment property, but there are many problems in concreteapplication. This paper using the case of the company’s specific information toanalysis the problems during the application of fair value accounting model in theinvestment property by the case company. Then it suggests improvements anddiscusses the enlightenments. The paper has theoretical and practical significance.It first researches the oversea and domestic regulations of investment propertyand fair value in the relevant accounting standards. Through analysis, it pointed outthat the application of fair value accounting model in investment property has itsnecessity and possibility. By using the relevant data of China’s listed companies, thepaper expounds the present situation of the application of fair value accounting modelin the investment property. It founds that the accounting mode has a great influenceon the company’s financial condition and operating results.On this basis, the paper analyzes the existent problems in the application of fairvalue accounting model in investment property of the case company. It concludes thatthe accounting method for investment property transfer is inconsistent, the fair valuemeasurement lacks of taking into account rental income, adjustment ratio exceeds therelevant provisions, without fully discloses information of transfer and fair valuemeasurement. The paper proposes some recommendations of uniting the accountingmethod for investment real estate transfer, introducing the income method to measurethe fair value, determining the fair value by assets appraisal price, improving theinformation disclosure of transfer and fair value measurement. Finally, the paperargues that the number of enterprises that use the fair value accounting model ininvestment property will be further increased. Strengthening relevant informationdisclosure, enhancing the supervision of asset appraisal business, and acceleratingconstruction of the fair value data repository for investment property are imminent.This paper makes some innovation on research significance and viewpoint.