Applied Research On Fair Value Model Of Investment Real Estate

From the introduction of the New Accounting Standards for Business Enterprises in 2007 to the present,more than a decade has passed.However,at present,the number of companies that adopt the fair value model as the follow-up measurement model for investment real estate is still little,there are still many obstacles in the process of practical application.In 2014,the Ministry of Finance pushed the"Accounting Standard for Business Enterprises No.39-Fair Value Measurement"standard,which is also applicable to non-financial assets.The new standard provides direction for the fair value measurement method,including the fair value determination method and fairness.Value-level disclosure issues,etc.How to choose the follow-up measurement model of investment real estate has received extensive attention.This article introduced the current status of the application of the fair value model of investment real estate firstly,and believes that the company may change the measurement model for the purpose of financing needs,earnings management requirements,protection of shell demand,management preferences,and improving the quality of accounting information,and then analyzes the change process.Possible problems in China and put forward their own suggestions.In this paper,Shen Guoshang Company is the case study object.Through analysis,it is found that companies with poor financial performance and poor financial performance are likely to change their measurement models to increase their assets and profits,beautify reports and even turn a profit into losses to avoid delisting,purpose.This will not only create a false impression that the company's performance is good,mislead investors,but may also cause companies to ignore the development of their own main business and adversely affect the company.Therefore,companies should take a sensible approach to the change measurement model and choose the appropriate measurement model.At the same time,regulators must also strengthen supervision to identify the company's unhealthy motives and impose more stringent requirements on information disclosure.Investors will be able to improve their professional knowledge while keeping their eyes open.They will make investment decisions after careful consideration.