The Application Of Fair Value In New Accounting Standards

From the beginning of the modern accounting, measurement is always the core problem of accounting. Traditional accounting mode1 is based on historical cost measurement. However, since the 1970s,especially the 90s,great changes have taken places in accounting environments. The great change in environment factors of international finance market surges up the wave of innovating financial instruments because the traditional measurement model don't adapt to demands of economic development. Based on historical cost accounting, financial instruments can not be embodied in financial reports. Therefore, the voice to improving and even thoroughly innovating measurement model is higher and higher. Fair value accounting is proposed and developed by the traditional accounting non-adapting to the market environment. To keep the usefulness of information quality, all the standard-making institutions regard fair value measuring all the derivative financial instruments as object. Despite lots of difficulties and resistances, the research on fair value is still developing like a raging fire. Furthermore, fair value has been infiltrating into change of other items' measurements and dealing methods. Because of more and more problems and obstructions the measurement of fair value has become one of the hardest questions of the modern financial accounting. However, it is a tendency to comprehensively apply fair value. So far, fair value accounting has made great progress, entered into substantial implement stage and been becoming one of the most important parts of International Accounting Standards and national accounting standards such as American Accounting Standards.The development path of application of fair value in Chinese Accounting Standards is full of twists and turns or ups and downs. Lagging of theoretical research and practical operation on fair value measurement in China has become the most outstanding difference between Chinese Accounting Standards and International Accounting Standards With developments of global economic integration and international coordination of accounting, Chinese standards-making institutions consciously realizes that avoidance of fair value will lead to the setback of accounting theory. Thus, Fair value accounting is widely and deeply researched. In February 2006,the Ministry of Finance issued the new Accounting Standards System including one basic standard and 38 specific standards. Fair value as measurement attribute was written in basic standard and widely applied in specific standards. The new Accounting Standards System embodies that Chinese Accounting Standards has made substantial step during international convergence, and marks that getting gradually mature Chinese market economic has been enough to provide the space of applying fair value.In the dissertation, based on reviewing the research accomplishments on fair value accounting at home and abroad and analyzing effect of applying fair value to Chinese enterprises, the author investigates how to make full use of international research results to guide and evaluate the research and application of fair value in China, as well as points out the challenge of fully applying fair value and its solving methods.