Fair Value Measurement And Its Impact On Enterprises Financial Reports

II In recent years, fair value measurement has become a hot topic of accounting development . With the continuous development of the economy, the emergence of a large number of financial instruments, historical cost of property has been more and more measures should not satisfy the information need of the user's Reports. Our country promulgated a new system of accounting standards, the large scale introduction of fair value measurement of the property, which is in line with the international accounting measurement of the development trend of our country have adapted to the objective requirements of economic development. In this context, this paper, a listed company's annual financial report of 2007, with "Accounting Standard for Business Enterprises No.3-Investment Property," "Accounting Standard for Business Enterprises No.12-Debt Restructuring", "Accounting Standard for Business Enterprises No.7"the exchange of non-monetary assets,"Accounting Standard for Business Enterprises No.22-Financial Instruments Recognition and Measurement "and other guidelines as an example, the fair value of in-depth exploration into the financial reports of enterprises and business behavior.Disclosure of accounting information at the most core aspect of the problem are the accounting measures, accounting measures in the current property, the fair value be considered the best, most relevant measurement of a property. However, whether it is in fact the case?In economic prosperity, strong liquidity environment, are often overvalued assets to fair value of the profits to be over-estimated to reflect the fair value of the relevance of accounting information sharp decline in the fair value of financial accounting measurement enlarge activity, and even become a further catalyst for financial speculation. When the bubble burst, the assets return to the normal value, fair value enterprise assets shrunk significantly, a substantial decline in profits is even a serious loss, the resulting financial crisis. In an economic slump, weak liquidity environment, often underestimated asset to fair value has been underestimated profits to fair value accounting reflects the relevance of the same information is not high, so that investors financial environment of the downturn even more pessimistic. Spread at the background of the global financial crisis, the measurement of fair value accounting has been an unprecedented concern, Although the application of fair value is only a confirmation of the potential profit and loss adjustments, and will not really increase the enterprise value, enterprises will have a great impact on financial reporting. As a result, fair value should be more rational, dialectical treaded.