Research On Application Of Fair Value On Measurement Of Internally Generated Intangible Assets In Hunan Hexing Electrical Co. Ltd

With the changing of the economic base, the knowledge contributes more and more to economic growth, and the self-create intangible assets (SCIA) has become a main index of the evaluation of the value of innovative enterprises. On the one hand, the theory and research methods of the fair value accounting have attracted increasing attention. On the other hand, the historical cost measurement, which is not the true sense of the value measurement, has become big obstacles to the further development of the SCIA accounting (even to the development of economics). Therefore, it is of important theoretical and practical significance to conduct research issues of SCIA accounting by using the fair value.Firstly, this thesis introduced the concept of fair value and SCIA, and analyzed the theoretic bases and measurement methods of fair value accounting. The classification and measurement of intangible assets were also introduced, which included the measurement of intangible assets by using the historical cost and the fair value. Secondly, this thesis analyzed the necessity of using the fair value for the measurement of SCIA, which were based on the accounting objective and requirements, the qualitative characteristics of accounting information, and so on. The possibilities of using the fair value for the measurement of SCIA were also discussed. Thirdly, the Hunan Hexing Electric Co. Ltd, which was high-tech enterprise of electronic information, was adopted for the case study. In this case study, the measurement results of SCIA provided by using the historical cost and fair value were compared and analyzed. On the basis of the above research, the influences of the different measurement results on the financial report, decision-making and risk management were also discussed. Finally, this thesis provides comments and suggestions for the improvement of measurement of SCIA in the Hunan Hexing.This thesis shows that the application of fair value in the measurement of SCIA can be helpful for the objectively reflection of the real market value of SCIA of the Hunan Hexing, and be positive for guiding the Hunan Hexing to increase independent research and development. This thesis can be helpful for the Hunan Hexing to establish the financial system and rules of the measurement of SCIA, which will also be a reference for the promotion of the full and proper use of fair value in China.