Research On The Application Of Fair Value Of Investment Real Estate Of Listed Company

In 2006,China’s Ministry of Finance promulgated a series of accounting standards,which introduced the fair value measurement method,including "Accounting Standard for Business Enterprises No.3-Investment Real Estate".The criteria for the first time recognized the existence of investment real estate and gave enterprises two subsequent measurement choices,namely,fair value measurement and historical cost measurement.This conforms to the rapid development of the market economy,the maturation of the real estate industry and the convergence with the international accounting standards.In order to make better use of the fair value,China’s Ministry of Finance promulgated the Accounting Standard for Business Enterprises No.39-Fair Value Measurement in 2014,and further explained the definition,level and valuation technology of fair value and at the same time made more stringent requirements of disclosure.Enterprise has investment real estate more and more in China,but the choice of fair value as a follow-up measurement of investment real estate is not much.Taking this as the breakthrough point,first of all the thesis uses the literature methodology and analyses the definition,scope,follow-up measurement of investment real estate and the definition,level and valuation method of fair value.Secondly,it analyzes the fair value of investment real estate in China from 2007 to 2015,which mainly analyzes the implementation of CAS39 on fair value disclosure in 2015 and the reason of application dilemma of fair value in investment real estate.And then to intercontinental oil and gas as a case enterprise,analyses the impact on assets and profits generated from investment real estate measured at fair value.Finally,the corresponding suggestions and three conclusions are put forward: First,the enterprises are cautious about the investment real estate measured at fair value;secondly,enterprises that using fair value measuring investment real estate,whose disclosure does not fully meet the requirements of CAS39;thirdly,investment real estate measured at fair value in the long run evaluates the performance of managers better.