Research On The Application Of Fair Value Measurement In The Investment Property

Since the investment property is separated from the subject of fixed assets,its measurement methods have been the focus of debate in the field of accounting theory and practice.Because of special feature of investment property,the historical cost model can not truly represent the value of the investment property,only the fair value model can represent the true value.The promulgation of the new enterprise accounting standards in 2006 has promoted the further convergence of Chinese accounting standards and international standards,so that our country is better adapted to the economic globalization.An important symbol in the process of convergence : "Enterprise Accounting Standards No.3-Investment property" gives companies the right to choose the metering mode,but must meet the prerequisite criteria.With the rapid development of China's real estate industry,housing prices continued to rise,however,due to the real estate market development is not perfect,the fair value of the market price,coupled with the volatility of the market,fair value is formed using the fair value measurement of the investment real estate changes after profit volatility loss the company is larger,companies in the choice of investment real estate used fair value measurement is still very cautious.However,due to the limitations of the traditional historical cost measurement attributes,the introduction of fair value measurement mode and the wide application of the measurement is necessary.However,in the fair value of the theory,the 2008 global financial crisis has made people questioned the fair value of the financial crisis,many scholars have been back at the event,it proved that the use of fair value has not increased the financial crisis,but in advance to expose the potential financial risks to investors,this crisis has opened up another path to the fair value of the study.In the long run,with the stability of our country's economic environment,the continuous improvement of the real estate market,the use of fair value is the inevitable trend of historical development.There is no denying that the use of fair value of investment real estate will be a potential impact on the financial situation of the listing Corporation,there will be a lot of problems in the specific application.Therefore,for the above problems,the study of the fair value of investment real estate model,has important theoretical value and practical significance.For a more comprehensive analysis of the current situation and the existing problems,the paper firstly reviews the relevant literature,and then introduces the concept of investment real estate and fair value measurement,the accounting requirements and theoretical basis of the fair value of investment real estate.Due to the current real estate industry in China,the use of fair value of investment real estate is limited,it is difficult to use a large sample of empirical research,at the same time for the specific company to use fair value measurement model for a more comprehensive analysis,this paper uses a typical case study method.In this paper,the research object of this paper is to analyze the application results of the fair value measurement model of investment real estate in the seven consecutive annual financial statements.Through the study of the fair value measurement model to the balance sheet and the profit table,the majority of the investment real estate fair value measurement model has a positive impact on the financial indicators of the listing Corporation,but also increases the performance and financial position of the listing Corporation.The research of this paper is divided into five parts:The first part of this paper is the introduction,which mainly introduces the background,literature review and research framework of this paper.The second part of this paper,from the concept and theoretical basis,systematically introduced the accounting standards in the relevant investment real estate and fair value,on the basis of the analysis of the investment real estate use fair value measurement theory.The third part of this paper describes the real estate investment real estate fair value measurement case.The motivation and the present situation of the fair value measurement of the investment real estate are analyzed.The influence of the fair value measurement of the investment real estate on the operating performance and financial situation is based on the data of 2008-2014.The fourth part of this paper deeply analyzes the problems in the use of investment real estate fair value measurement model,including the management of the use of fair value of profit control,investment real estate fair value does exist,the fair value of information disclosure is not fully non standardized,fair price measurement model to increase the volatility of economic performance in four parts.The fifth part of this paper puts forward some suggestions,including the management of the use of fair value model,improve the enterprise's own assessment of assets,improve the fair value of the measurement of information disclosure,and strengthen the fair value of investment real estate audit four.