On Application Of Fair Value Measurement In Land Valuation

Recently, due to the continuous development of economy, the land has attracted more attention and become one of the important economic factors because of its economic benefits and resource scarcity. Because of our special national condition, many economic agents have dealt with land usage right transactions and entered an item in an account. Therefore, the accounting treatments of land usage rights have increased accordingly. What is more,considering to large amount of money involved and being an important part of financial reporting, the value quality of land usage right will produce certain effect to accounting information users.Land valuation as an important basis for accounting treatment should meets the needs of economic development and the demands of accounting information users. However, the land valuation industry faces many challenges and possesses many problems now, and the valuation results cannot be completely fair, relevant and reliable. Moreover, the Ministry of Finance released the Accounting Standards for Enterprises No. 39- Fair Value Measurement formally on January 26 th, 2014 which provides the standard of fair value measurement to deal with the related assets and liabilities and also provides some idea to solve the problem of existing land valuation industry.This paper attempts from the current actual needs of economic development and the accounting information users and the necessity of theoretical research of fair value and land valuation to find the necessity and urgency of study. Furthermore, this paper chooses Economic Consequences Theory, Decision-making Relevant Theory and Transaction Cost Theory as theoretical basis to support for the fair value applied to land valuation. From the development of land valuation at home and abroad and the current situation, this paper analyses the problems and causes of land valuation industry in our country and the necessity of fair value used in land valuation. Moreover, this paper explores the usage of measurement unit, level, and valuation technique applied to land valuation. Finally, it provides some improvements and thought to solve the actual problem of land valuation and put forward the prospect of future research.