Study On The Choice Motivation And Economic Consequence Of Investment Real Estate Fair Value Model

The price of China's real estate market is complex and changeable.In the accounting measurement of investment real estate,the cost model is increasingly criticized by all sectors of the society due to the limitations of historical light and its own investment value-added features.The fair value measurement model has received increasing attention due to the highly relevant nature of disclosure information.In international accounting standards,it is also advocated that investment real estate projects are mainly based on the fair value measurement model.China has also issued guidelines for the introduction and guidance of enterprises on the application of fair value measurement models.However,through observation,most companies in practice still use cost models for subsequent measurement of investment real estate,and the use of fair value measurement models is not extensive.Based on this,research on the application of fair value in practice is particularly important,especially the actual impact of the company after applying the fair value model.Based on the background of the fair value measurement model not widely applied,this paper study from 16 real estate companies that measure fair value with investment real estate from 2007 to 2015,and analyzes the motivation and economic consequences of changes in accounting policies in the industry.In conjunction with the specific case of Calxon,after studying the motivation and economic consequences of its adoption,the analysis of Calxon's fair value model has the existence of unstable economic performance and impaired information comparability.The problems of high implementation costs and non-standard application are also the reasons that limit the promotion of fair value measurement models in practical applications,and put forward corresponding suggestions for problems.It is hoped that by studying the selection of fair value measurement motives,economic consequences,and problems in application of Calxon,other companies can learn from it in the selection of fair value measurement and apply the fair value measurement model better.At the same time,it proposes the problems in the current application and expects that the application environment for fair value measurement will be improved to promote the continuous and effective use of the fair value model in China.