Researches On Relevant Issues Of Fair Value Measurements In Inactive Market Environments

Fair value accounting is the mainstream of financial accounting. Related research results about the use of fair value in active market environment are rich and uniform.However, as another important part of the system of fair value measurement, the matter of fair value measurement in inactive market environment has more difficulties.Relevant theories and methods research in the paper will help to establish the theory and method system of fair value measurement and disclosure in inactive market environment and thus promotes the comprehensive application of fair value.Based on the summary of research results on fair value at home and abroad, this paper takes fair value inputs and valuation technology as breakthrough points,analyzes deeply to fair value measurement issues in inactive market environment. The author believes that, firstly, fair value can be used in both active and inactive market environment, more should be applied in inactive market environment; secondly, the identification of different types of market environments is necessary and possible;thirdly, there is a natural “blood relationship” between fair value and accounting professional judgment, Use of accounting professional judgment doesn’t affect the quality of fair value; fourthly, fair value measurement and disclosure in active and inactive market environment have both similarities and differences; fifthly, with the continuous development of market economy, the environment for the application of fair value in China will be improved, fair value accounting has a brighter future.This paper is innovative in constructing a system to identify market environments fair value applies in, and optimizing the income approach valuation model with Ohlson’s residual income theory. Another innovation point of this paper lies in the comparative analysis of fair value between active and inactive market environments. Based on this, this paper gives a deep analysis to the application of fair value in our country, and makes suggestions for improvement.