Research On Measurement Motivation Of Fair Value Of Investment Real Estate From The Perspective Of Earnings Management

Fair value has been a hot topic in the field of international accounting since 20~thh century,under the effervescent market in the West,fair value grew so quickly and was easy to be measured reliably.But in our country,at the start the application of fair value gone through setbacks which was denied,then it was used again with more restrictive conditions.In 2006,In order to accord with the international advanced standards,the Ministry of Finance promulgated new Accounting Standards for Business Enterprises which allowed the subsequent measurement of corporate investment real estate to adopt a cost model or a fair value model.Compared with the two models,fair value can raise the dependability and facticity of corporate accounting information.However,from the implementation of the guidelines in 2007,the use of fair value measurement is rarely used in corporate investment real estate operations.According to the statistical results,from 2007 to 2016,there were 1494 companies in which the Shanghai and Shenzhen A-share listed companies held investment real estate,but the use of fair value measurement was less than 6%.Theoretically speaking,most companies should choose to convert the cost model to the fair value measurement model because of the advantages of fair value in improving the authenticity of financial information,but the results are quite different from expectations.Why do those minority companies prefer to take the unusual road?This is also the cause of the study.This article summarizes relevant domestic and foreign references,because of the intricate background of China's real estate industry.From earnings management,with the help of contract theory,opportunistic assumptions,and stakeholder theories,we choose the Shanghai and Shenzhen A-share listed companies.--Jiakai City launched a case study.The feasibility and concrete measures for earnings management of Fair Real Estate in Jiakai City are analyzed.The company's investment real estate is analyzed from four perspectives:business performance,debt constraints,management characteristics,and the housing market.At this point in time in 2016,the fair value measurement motive was used.At the same time,the impact of fair value measurement on corporate financial indicators and potential risks were also examined.Finally,based on the previous theories and case studies,a summary is made.Based on China's actual national conditions and the special nature of real estate,feasible suggestions on the continuous improvement of fair value measurement criteria and earnings management control are proposed.