The Study On The Effectiveness And Applied Economic Consequence Of The Fair Value Measurement

With the further development of market economy and financial innovation after another, the fair value measurement as the only relevant measuring properties attributing for financial instruments is increasingly respected by the domestic and international financial community and the accountancy. The fair value measurement attribute is widely used from 2000 to 2007. In 2006, the Financial Accounting Standards Board issued No. SFAS157 pushed the fair value to a climax. The fair value measurement was carefully and widely re-introduced in the new accounting standards issued by China in 2006. However, the financial crisis originated in the U.S. in 2008, popular in global set off criticism and doubt about the fair value measurement once again. In order to restore the market confidence, U.S. GAAP and IFRS separately issued detailed guidelines on the application of the fair value measurement in order to assess the fair value fairly. Soon after, three-month investigation by SEC gave a clear answer about the abolition of the fair value measurement. More people support to use the fair value measurement continually, but must accelerate the theoretical and practical research.Based on this, this article starting from the research background and significance, demonstrating the importance and necessity of the research, summarizing the current status of the fair value in domestic and abroad. Analyze the basic theory of the fair value, including the market theory, value theory, stakeholder theory, accounting objective theory and so on. Next investigating the nature of the fair value, demonstrating the effectiveness from the independence, adaptability to the economic environment, compliance to the conversion of the accounting concepts and the requirements of the accounting information quality and the operability. Starting from the application of fair value in China, Analyze the impact of application on the market economy environment, financial statements and the stakeholders in order to contributing the development of theory and practice. However, because of the Shortage of capacity, as well as the time, energy and other constraints, this article has some deficiencies and areas for further research. Expect more of the accounting and financial stakeholders to increase and deepen its research, promoting the continuous development and successful implementation of the fair value measurement.