Study On Valuation For Financial Reporting

When the International Valuation Standards Committee developed its standard of valuation for financial reporting(VFR) the first time in 2004, the Chinese valuation profession nearly knew nothing about this kind of valuation practice. In 2006, new edition of Chinese accounting standards published and fair value measurement marked as a main characteristic. This trend in accounting standards give birth to a new kind of valuation practice relate to fair value estimation in China, which is called VFR. Because of the amphibolous attitude of accounting profession and the lack in research in valuation profession, there are many problems worldwide need to be resolved, such as experts and valuation base. Although they were discussed in the procedure of valuation standards development, no sound research done yet. There is also a virgin area in this field in China.In 2007, new accounting standards enforced in list companies, VFR begin to be performed. Research on theory, techniques and regulatory policy is important premise. Without predecessor, comparing to foreign theory and practice, the paper tries to analyze those problems in VFR and give advice to Chinese valuation profession.There are five chapters in this paper. The first part is introduction, making clear the ground, methodology, main new ideas and deficiency. The second chapter analyzes the purpose, characteristics, status quo and prospect of VFR in China, discusses the importance of research, evaluates the feasibility of VFR. The third chapter introduces theory base and key aspects of VFR, analyses the match of valuation base which disturbed the valuation profession and the accounting profession for a long time. This chapter leads to a conclusion that market value in valuation matches fair value in accounting by analyzing the economic meaning of valuation bases. The fourth chapter analyses the typical types of VFR practice abroad and give advice to domestic practice. This chapter focuses on fix assets impairment, purchase price amortization and share-based payment. The fifth chapter tries to give advice to the regulation of VFR practice, such as cooperation of related parties and development of valuation standards.