The Research On Fair Value Measurement In The Application Of The Investment Real Estate

As a new and important measurement attribute, the fair value has got a complicated and tortuous process in application. Being introduced in the new accounting standards, that shows that our country is implementing the fair value measurement in an all-round way in our accounting. However, some problems can still be observed now. For instance, the deficient market system, the low self-quality of accountant and the inaccurate accounting evaluation and so on, which can directly result in the fairness of the financial statement by manipulating responsibly. That means it serious affects the reasonableness and reliability of the assets. The accounting standard give a specific definition about the investment real estate: The fair value can be chosen to use in the measurement after recognition unless meeting some qualification. Although, the currently situation is that there are some property companies still use the cost measurement as before. Therefore, this paper deals with why the fair value can not be used universally in the measurement and it also gives the counsel to extend in future. This paper mainly studies the content as follows:The first chapter introduces the background and significance of the study, as well as the study of the status at home and abroad.The second chapter describes the concepts and characters of fair value measurement and investment real estate, then summarized the applications in China.The third chapter chooses two listed companies of real estate in Shanghai and Shenzhen Security Exchange Market, and research and analyzes the impacts on the different measurements, which is respectively applied on the investment real estate in the measurement after recognition.The forth chapter provides the suggestion on how to use the fair value measurement accurately according to the situation of application in China currently.The last chapter summarizes the full text, and addressed the conclusions and deficiency of this study, the study of paper directs the methods of fair value measurement for further study.