The Problem And Countermeasures Of Application Of Fair Value In China

Fair value accounting development is an important trend, China promulgated in 2006, "New Accounting Standards" with the International Financial Reporting Standards in the major areas of convergence. This also shows that our standard-setting bodies or whether it is academic to the fair value accounting is no longer held an evasive attitude, how to become a better application of the fair value of the main problems facing all sectors. Implementation of new guidelines for the first time since the fair value of the further demonstrated its advantages relative to historical cost, but the new guidelines on the provisions of the fair value of some problems:the provisions on the fair value of the various criteria are not scattered to form a complete system, Determination of fair value and there is no clear description of the limited scope of application of fair value and so on, these problems are not resolved to limit the application of the fair value of the future of our country, that is how the defects for the exposed, and improve the accounting fair value in China Application of theory and practice will be to focus on solving community problems.U.S. FASB fair value for long-term, in-depth study of the criteria for the formation of a complete system. September 15,2006,FASB issued Financial Accounting Standards SFAS NO.157 Bulletin, "Fair Value Measurements" (SFAS NO.157), SFAS NO.157 created in the history of U.S. accounting standards announced in the form of a systematic exposition of measurement attributes precedent, marking the replace the historical cost of fair value in financial accounting as the most important measurement mode has taken a crucial step forward. SFAS NO.157specific measurable goals, measurement unification guidelines, measurement and disclosure of expansion of class time and borrowed theories and methods of asset valuation.However, SFAS NO.157provisions of fair value is not perfect. The outbreak of the second half of 2007 from the U.S. financial crisis on the global economy has a significant impact, while the fair value of suffering in this crisis is also controversial. On the fair value of play in this crisis is the role of the culprit or the waves became a hot topic. December 30,2008 the U.S. Congress the authority to the SEC investigation report "market accounting research", that is not the fair value of the root causes of the crisis, but the fair value measurement should be improved. Fair value in this crisis because of the controversial fair value of the important pro-cyclical effects.In addition, the fair value exposed in this crisis does not apply to non-rational market environment and increase the volatility of the financial order and summary of the problem worth considering.Although China's market economy system is still under construction in the process, the market has not yet reached the full level of the degree of competition, but this does not mean there is no application of the fair value of the environmental foundation. By increase the active cultivation of fair market, fair value of the professional assessment and speed up the convergence and integration, improve the fair value of the standards system, to guarantee the rational application of the fair value of the internal control, improve the professional quality of accounting personnel, will help improve the fair value accounting application in China.This article is divided into five aspects. The first part, mainly on the theory expounded fair value, including the definition of fair value, features, determine the methods, theoretical basis. The full text of this section is the cornerstone of the expansion of the following played a role in paving the way, some of the concepts and methods will be repeatedly used below.The second part, mainly affecting the application of fair value analysis of the factors, influencing factors, including market conditions, legal systems, socio-cultural and accounting education. These factors should affect the application of fair value in China, analyzed below fair value for accounting applications in our problem plays a fundamental role in the application of the measures put forward a sound reference to these factors will happen.The third part is mainly summarized from the application of new accounting standards in 2006 since the application of fair value accounting in our problems and issues analysis to identify the root causes of problems. This part is the core.The fourth part focuses on application of the fair value of the U.S. experience of the introduction of SFAS NO.157, of SFAS NO.157 is something to learn; the financial crisis, the objective is the touchstone of SFAS NO.157, fair value during the crisis also exposed a number of fatal defects. Experiences and lessons learned with the hope that the practical applications of our inspiration.The fifth part, made on improving the application of fair value accounting measures, proposed measures include the construction price information system, establish a sound basis for relevant systems, strengthen auditing and supervision and improving the quality of personnel in four main areas.