Application Research On Follow-up Measurement Of Fair Value Of Investment Real Estate In China

Because of cost model's objective and cautious,the cost accounting model has always been the first choice.However,with the development of economy and society,many problems have appeared in accounting measurement of investment real estate with cost model.The most obvious problem is the imbalance between book value and market value.The 2006 Accounting Standards for Business Enterprises reintroduced fair value.In the financial instruments,investment real estate,debt restructuring,non-monetary transactions and many other criteria,enterprises can use fair value measurement model.This measure indicates that our accounting standards are further converging to international accounting standards.Among the numerous criteria,except for the fact that fair value is more commonly used in financial instruments,the use of fair value measurements in other accounting items is not optimistic.In particular,investment property account,as an important part of the most direct response to the accounting policies metering mode selection,the use of fair value suffered widespread avoidance.This article analyzes the application status of follow-up measurement of fair value of investment real estate from the aspects of quantity,industry,region,company nature,A+H shares and information disclosure,and summarizes the problems encountered in the application of fair value and the reason for the dilemma of fair value's application.On this basis,in conjunction with the study of fair value users' financial status before adopting fair value and the influence of the change of measurement mode on the company,a summary of the incentives for subsequent measurement of fair value was presented.Finally,taking China Security&Fire Co.,Ltd as an example,the research was conducted from the aspects of the survey of fair value measurement of investment real estate,the financial status prior to the adoption of fair value,and the motivation of fair value measurement.The study found that China's A-share listed companies have low willingness to follow-up the fair value of investment real estate.CAS3's restrictions on fair value,information disclosure costs and other factors will restrict the company's subsequent measurement of fair value.The enterprise adopts the follow-up measurement of fair value for investment real estate,and it has incentives such as improving financing capability,improving profitability,and improving the relevance of accounting information.Based on the above findings,this article will make relevant recommendations on the follow-up measurement of the fair value of China's investment real estate.