| The Accounting Standards for Enterprise issued since2006, Investment RealEstate isolated from fixed assets, intangible assets as an independent accountingsubject, how to measure it has been the focus of attention of the accounting theoreticaland practice circle. Historical cost with its reliability and income smoothingfunction, has been chosen for many listing corporation. There is no denyingthat, compared to the fair value on the assets measurement of high correlation andhelping investors in understanding the real corporate operating performance, historicalcost is incapable of action. So, what kind of measurement attributes to better serving theInvestment Real Estate Measurement on the condition of China’s realistic market, is theproblem that many scholars and managers of the enterprises face to.With the perfection of market economy, the domestic real estate market has beenrapidly develop in recent years, the continuous development of the EconomicGlobalization, narrow the gap between the China’s Accounting Standards withinternational standards in the distance. Theoretical circles generally believed that thefair value will be applied to most enterprises who have Investment Real Estate when theCAS3has just promulgated. But the actual situation is unexpected: The cost model isstill the first choice for most enterprises, a few enterprise who change measurementmodel, their motivations are not the same. In January2014, the specific standards ofFair Value Measurement promulgated, fill many theoretical blank of China’s fair valuemeasurement aspect, improving the operation of fair value in our country under theenvironment of market economy, providing the measurement of the Investment RealEstate of enterprises.In view of the connecting link between the preceding and the transition period, thisarticle use standard research and case analysis, first of all, review the basic theory ofFair Value Measurement, and analysis the guiding significance of newly published FairValue Measurement Standards for the enterprise measurement of the Investment RealEstate. Then, analysis the overall using situation of the fair value of the enterprise to carry on the Investment Real Estate Measurement and reveal the purpose andmotivation behind the mode selection held by the enterprise. Then analysis thegeneral situation of our country’s enterprise who have Investment Real estate and usethe fair value measurement,discuss on the economic consequences of the fairmodel, initially revealed the purpose and motivation of selection of measurementmode held by enterprises, fully affirmed the advantages of the fair value in improvingthe quality of accounting information, and on improving the financial situation ofenterprises.Then analysis the factors affecting the choice of the Investment RealEstate accounting policy,and analysis deeply of problems and causes existing inthe measurement of Investment Real Estate of fair value in our country. Last, putforward the suggestion of the future enterprise to improve the measurement ofInvestment Real Estate to provide reference for the gradual promotio n of fair valuewhich is also the starting point and the ultimate aim of this paper.The main contribution of this paper is collecting and sorting more than2500oflisting corporation in annual reports by home search and analysis, ultimately selectsix enterprises in2013who decided to change measurement mode of Investment RealEstate. For the different purpose of the enterprise who change measurement model,tomake classified and comparative analysis. Put forward suggestions on Investment RealEstate Measurement of enterprise,it has some practical significance for thespecification of our Investing Real Estate Standards and improving the measurementand the application of fair value. |
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