Application Of Fair Value Measurement

Accounting measurement attributes is an important basis for enterprise accounting measurement. Our accounting standards shall apply to Chinese enterprises accounting measurement attributes.There are five:historical cost, value, replacement cost, the present value of the fair and net realizable value.With the rapid development of the socialist market economy and the continuous improvement of China’s socialist market economy, China’s corporate financial accounting is continuing with the International Accounting Standards enterprise to achieve "convergence." In my accounting measurement attribute, the relationship between historical cost and fair value of very subtle form of this relationship have mainly two reasons:First, there complementarity between historical cost and fair value measurement of these two properties, independent and mutually consistent relationship; secondly, at different periods of social development, accounting for the different requirements of the enterprise, the enterprise of historical cost and fair value is not the same focus.For example, in the United States, Britain and other capital markets are more refined and developed countries, market various assets and liabilities of more mature, while the regulatory system from community groups or government departments more developed, refined and independent, so that these economies The business needs of the body of fair value is relatively high, because the fair value and value in real time to provide relevant information for investors and other economic agents rational decisions; such a market economy in our country is still not perfect country, comprehensive use of fair value becomes less realistic, the use of historical cost even more feasible. As another example, for banks, insurance companies and other financial enterprises, but also provides the fair value of stocks, bonds and other financial assets or liabilities related to the financial data, and in the manufacture, production enterprises, and to better reflect the historical cost financial companies condition, results of operations and cash flows.An indisputable fact is:social development will continue to move forward, the capital market will continue to improve, which means that the fair value measurement attribute that will play an increasingly important role. The current situation is that the original cost of the historical cost of the provided data and prudent financial market participants increasingly difficult to meet the demand for more relevant financial data, and the fair value is due to provide more relevant financial data was only recognized by market participants continue.I choose the fair value of the study for two main reasons.First, over the past decade, from all angles on the fair value of this hot topic of numerous research articles, but these studies are summarized below and much; the second, in 2014, the Ministry of Finance issued "Accounting Standards for Enterprises No.39-measured at fair value," coupled with the continuous improvement of China’s capital market, the fair value seems to play a pivotal country in the measurement process in corporate accounting a role.This paper has four parts:first, produce and scholars fair value measurement attribute this recent case studies and research focusing on the fair value; second, over the past decade, the fair value of the measurement attributes in our business financial assets, investment property, the exchange of non-monetary assets, share-based payments, business combinations and other areas of application; third, as a corporate accounting of the two most important measurement attribute fair value and historical cost between relationships and explore and forecast the future development pattern; fourth, in view of the Ministry of Finance in February 2014 formulated the "Enterprise Accounting Standards No.39-measured at fair value", a comprehensive study of the guidelines in the "fair value" and the original company accounting standards in the "fair value" What similarities and differences, and boldly predicted "Enterprise Accounting Standards No.39-measured at fair value" after the promulgation of the impact and implementation of the enterprise and the market brings.Compared with the domestic research results, to be innovative research in the following areas:The first of all. Introduce more comprehensive research priorities and research results related to the fair value of the domestic and foreign.Secondly. Comprehensive discussion of the relationship between historical cost and fair value, and to give their views on the future development trend of in betweenFinally. Just combine the promulgation and implementation of the "Enterprise Accounting Standards No.39-measured at fair value," compare and analyze the relevant provisions of the old and new guidelines on fair value, and the "Enterprise Accounting Standards No.39 measured at fair value." boldly predicted impacts after implementation has a certain timeliness and innovation.There are two problems during the study:The first of all,The lack of empirical research. Because just-released 2014 annual report, the financial data related to the fair value of the listed company before finalizing this article available to small, and because the recently issued new guidelines for fair value, many enterprises in a certain "wait and see" attitude when selecting accounting policies the limited impact of the new guidelines on the fair value of the listed company’s annual report in 2014, it is difficult to form an effective sample data.Secondly, Due to the limited time to prepare papers, many of the relevant literature in the field is difficult to read, so the paper perhaps the more one-sided view of the situation will exist.