| On the Feb.15th,2006, the treasury department issued new accounting principle, which included many great changes in some important aspects, and one of the key points is the fair value accounting method. Fair value is the sum of actual or assumed fair transaction price of asset exchange and liability payoff made by both parties who are familiar with the situation in their own will, based on normal commercial consideration in the report day. The using of fair value method has been argued for a long time between accounting standards setters and banking regulation bodies. There is no doubt that using the fair value measurement model will not only make considerable influence for the habit of using historical cost modeling, but also make tough challenges for the concept of risk management, risk control technology, macroeconomic environment and market risk management ability.Since 2008, the global financial crisis come of the sub-credit in USA hits the world economy. In this crisis, several banks complained that on basis of the financial instruments standards, they need rapidly reflect the asset prices fluctuate in the financial statements which due to the decline of market prices. The decrease leads to the mortgage assets value decreased vastly, it maybe exacerbated or enlarge the financial crisis. Financial instruments standards and fair value measurement become the focus once again.Based on this background, this paper and the measurement of fair value were analyzed, each depicting the meaning of fair value and characteristics, the fair value measurement techniques, the fair value measurement and decision-usefulness view and the introduction of fair value measurement of financial industry significance. Second, respectively, from accounting, financial reporting, risk management, discusses in depth three aspects of the fair value measurement of the impact of China's commercial banks. Again, the fair value measurement in China's banking industry in the current situation and problems of the use of a systematic analysis. Finally, China's specific national conditions, respectively, from the introduction of assessment tools, to strengthen internal control and risk prevention, strengthening banking supervision, increase the CPA assessment and verification operations of the four perspectives on how to deal with the banking sector caused by fair value accounting challenges. |
