Research On The Investment Real Estate Measurement Model Change

In 2006,China issued a up-to-date accounting standard,which has been improved in many aspects.Among them,the international convergence is its greatest feature.The application of fair value measurement in the standard has received extensive attention.In the guidelines,it is clearly stipulated that in the subsequent measurement of investment real estate,the company shall select the suitable measurement method for the enterprise in combination with its own environment,and the same company must unify its measurement method.There shall not be a situation in which two measurement modes are shared.However,different measurement modes will lead to completely different reflection of the same economic consequences on accounting information.Therefore,it is necessary to discuss the motivation for the selection of investment real estate accounting policies for enterprises and their impact after the selection.These are precisely the focus and purpose of this paper.This article adopts the literature collection method,combing scholars at home and abroad to study the motivations and financial impacts of changing investment policies for investment real estate.Then the related theory is summarized,and then the difference between the cost measurement model and the fair value measurement model is pointed out.Immediately afterwards,the motivations of the company's change of the investment real estate accounting policy and related basic theories were pointed out.Then select Guanfu Holdings Co.,Ltd.as the actual research object of this paper,connect all the links of its change accounting policy,and combine the change process of Guanfu Household accounting policy,the development of the real estate industry,and conduct a more detailed analysis of the case.Through in-depth study and analysis of the case,it is not difficult to discover that the main motives for Guanfu Household to change its measurement mode are to faithfully reflect the true value of the company,improve its operating performance,retain its listing qualifications,and impact,the performance drivers of its managers.The conversion of the subsequent measurement method for investment real estate has had a positive effect on the performance of Guanfu Household.After Guanfu Household changed its investment real estate accounting policy,although the amount of gains and losses from changes in fair value did not really bring about an increase in cash flow for the company,it exacerbated the deviation of net profit and cash flow.However,it made the company turn around and avoid losses.In terms of its influenceon the balance sheet,due to the continuous increase in the value of real estate,the fair value of investment real estate has also gradually increased,making the investment real estate scale continue to expand,while reducing the asset-liability ratio and improving assets.The structure of the liability;its impact on related financial indicators.As far as its impact on relevant financial indicators is concerned,although the operating capacity has not changed much,profitability and debt-paying ability have both increased significantly;stock prices have also stabilized.Finally,this article elaborates the positive effects and problems brought by the change of the follow-up measurement mode of Guanfu Household investment real estate,and the implications for the company.Based on the irreversibility of the fair value measurement of investment real estate and the uncertainty of the real estate market,the company should change its accounting policy according to its own circumstances and pay attention to the trend of the real estate market.At the same time,external regulatory agencies must strengthen supervision and improve relevant information disclosure systems.