Research On The Improvement Of Financial Statement Presentation Under Fair Value Measurement

In 2014 the ministry of finance officially issued the accounting standards for enterprises No. 39- fair value measurement(hereinafter referred to as the fair value standard),which has carried on the detailed rules of the definition and the initial measurement of fair value, fair value valuation techniques and level and so on. The promulgation of the fair value standard on the one hand is to supplement and perfect our country’s accounting standards system, accelerate the pace of convergence with international accounting standards in our country, on the other hand it also illustrates the application that fair value range will be further expanded. The introduction of fair value measurement is bound to cause changes in the content and format of financial statements presentation. Under the background of the historical cost and fair value measurement existing side by side, how to make the presentation of financial statements to meet the decision-making needs of the statement users and provide convenience for users to interpret financial information is the meaning of this article studies.This article mainly adopts normative research method, first of all, it puts forward the urgency and importance of improving the presentation of financial statements under the backdrop of the fair value measurement. Secondly, on the basis of existing research results of the scholars both at home and abroad, it comb the existing problems of financial statement presentation and draw lessons from the FASB and IASB about the improvement measures of financial statements presentation. The last, it proposes our country`s improvement methods on the presentation of financial statements.This article is divided into six parts: The first part is the introduction. It mainly has been clear about the background and significance of this writing, and the related literature at home and abroad were reviewed which provides analysis basis for the research on the improvement of financial statement presentation under fair value measurement. The second part is the introduction of relevant theories, on the one hand, which achieves the purpose of renewing the theories, on the other hand, predicts the unknown and something not observed through the analysis of existing theories. The third part expounds the urgency and importance of the improvement on this question through the analysis of how the fair value influences the financial statements. The fourth part summarizes the presented problems in financial statements of our country. The fifth part introduces the joint projects on financial statements of the FASB and IASB and analyzes the advantages and disadvantages of the improvement, then puts forward the opinions which is significant to our country. The sixth part mainly combined with the fourth part and fifth part, tries to overcome the defects and shortcomings of the traditional presentation of financial statements to improve the presentation of financial statements in China.This article mainly makes the improvement research on the balance sheet, income statement and note. Specific research conclusions include:(1)Assets are classified as the operational assets and the investment assets;(2) "Capital reserve" project was dismantled into capital(stock) premium, other comprehensive income and capital reserves;(3)The income statement is renamed the comprehensive income statement;(4)Making specific improvements on the operational assets impairment and unrealized profit of the investment assets;(5)Rearranging the content and format of comprehensive income statement;(6)Disclosing the assets and liabilities value table in the notes.