The Research On The Application Of The Fair Value Measurement Model Of Investment Real Estate In J Group

Based on the rapid development of the market economy and the need to converge with international accounting standards,the Ministry of Finance of China revised the new accounting standards in 2006.Historical cost measurement is no longer the only measurement attribute,and fair value measurement is introduced into accounting standards.In recent years,with the rapid development of the real estate industry,housing and land prices are one day at a time.Their actual market prices are often higher than their acquisition costs,and they are still calculated using a cost measurement model.Obviously,it has been unable to satisfy the relevance of financial information.The development of fair value measurement has become an inevitable trend.In 2006,the Ministry of Finance of the People’s Republic of China promulgated the "Accounting Standards for Business Enterprises No.3-Investment Real Estate".At this point,China first appeared the subject of investment real estate,and the guidelines gave companies the option of two subsequent measurement methods-fair value measurement model and history.Cost measurement model.In order to further standardize the use of fair value,the Ministry of Finance of the People’s Republic of China promulgated the "Enterprise Accounting Standards No.39-Fair Value Measurement"in 2014,which explained in more detail the fair value definition,hierarchy,and valuation techniques.The disclosure of value has made stricter requirements.Since the introduction of the new standard,the fair value measurement model for investment real estate has not been popularized,and most companies still prefer to adopt a cost measurement model.At the same time,these enterprises that use the fair value measurement model generally have the problem of non-standard fair value use.Then,what factors should companies consider when choosing a fair value measurement model?What kind of economic consequences will the fair value measurement model bring?How to improve and improve the application of fair value measurement models in investment real estate?These are worth our attention.Based on the existing research results,this dissertation analyzes the changes in the measurement model of J real estate investment real estate,analyzes the economic consequences of adopting the fair value measurement model,and obtains relevant inspirations for the adoption of fair value measurement models for investment real estate.This dissertation consists of six chapters.The first chapter is the introduction.It mainly introduces the background and significance of the research on fair value measurement model of investment real estate,and emphasizes that the application of fair value measurement model is of great significance to the development of accounting standards and the improvement of the relevance of corporate financial information.Then we combed and evaluated relevant documents at home and abroad.At the same time,it elaborated the research ideas,methods,and significance,and explained the innovation and characteristics of this dissertation.The second chapter is the definition and theoretical basis of the important concepts.In order to let readers understand this dissertation better,it defines the related concepts such as accounting measurement attributes,fair value,and investment real estate,and also elaborates the theoretical basis on which the analysis is based.The third chapter is the background analysis of the fair value measurement of the J Group’s investment real estate,which is elaborated from the three aspects of the changes of the investment real estate accounting measurement attributes,the overall measurement of the real estate industry investment real estate follow-up measurement,and the J Group investment real estate profile.The fourth chapter is the specific analysis of the use of the J Group’s investment real estate measurement model.First,it analyzes the reasons for changes in its accounting policy.Second,it studies the impact of the change on its financial statements.Then,it analyzes the fairness when the price falls in conjunction with the procyclical theory.The value measurement can have an impact on the business.The fifth chapter is case inspiration,including the selection of the measurement model must be in line with the actual business conditions of the company,consider the pro-cyclical effect when using the fair value measurement model,standardize the disclosure of fair value measurement information,enhance the professional judgment ability of accountants and strengthen the fair value measurement.The use of supervision.The sixth chapter is the research conclusion and the future prospect,summarizes the full text and points out the follow-up research direction.In general,fair value measurement of investment real estate is not widely used in China.There are many problems in the development process.However,fair value measurement can provide more relevant financial information and it is doubtful.Investment real estate fair value measurement The development is an important part of improving accounting.This dissertation studies the follow-up measurement model of J Group’s investment real estate based on the pro-cyclical theory,which shows that companies should carefully choose the measurement model and draw relevant inspirations for subsequent measurement of fair value of investment real estate.This enriches China’s investment real estate fair value measurement.The accounting research has a certain guiding significance for the practice of enterprise accounting.