Research On Fair Value Measurement

In February 2006, the Ministry of Finance issued enterprises accounting standards which consists of 39 items, and constructed Accounting Standards System which is convergence of international financial reporting standards, at the same time, in line with the national conditions of China. The highlight of the new guidelines is the large-scale introduction of the fair value. The biggest problem of the implementation of fair value is fair value measurement. But the academic communities still have no conclusion on many aspects of fair value measurement theory. At this stage, strengthen the theory of the fair value measurement and research the required conditions, the obstacles faced and Countermeasures are particularly important. This thesis uses qualitative and quantitative, analysis, comparison, summarized, quoted, and other means to research issues of fair value measurement, with the purpose to provide certain reference materials to the accounting theory community and play a guiding role in the substantive work of the accounting.The thesis is divided into six parts to discuss the relevant questions about the fair value measurement:The first part is introduction including the reason of topic chosen and the significance of the thesis, which introduce the study methodology and the main content on the basis of researching the domestic and international achievement in this field.The second part is devoted to the basic theory of fair value, including of the historical background, meaning and development, as well as the theoretical foundation. Fair value is not a new attributes, it is a more objective and more comprehensive and practical measurement attribute coordinate to the traditional measurement attributes.Part three tells the merits and shortcomings of fair value measurement. Fair value measurement is value measurement on simulation proposed transaction. If the most important markets of assets or liabilities exist, the result of measurement is a direct observation of the market price or use valuation techniques to determine the price, even more advantage prices is acquired in other market in the measure day. So, see it as a price instead of understanding it as a value. Measurement method should be divided into three corresponding levels in reference to the levels of the information of fair value measurement in SFAS157, when the same assets or liabilities' price information can be acquired in the active market, the price is fair value; when only similar assets or liabilities' price can be acquired in the active market, adjustment should be adopted to get fair value; when the two types of information can not be acquired, fair value is estimated by the method of valuation techniques, such as the cost method and present value method.Part four introduced the process of application of fair value in China's accounting standards and how our 2006 promulgated new guidelines to embody the prudent use of the fair value.The fifth part analysis of the application the obstacles of fair value use, and provide the relevant Countermeasures to improve the situation.The final of the thesis is conclusion and prospects on the use of fair value. Along with theoretical research of the fair value measurement more thoroughly, operational guidelines more perfect, the information quality provided by fair value measurement will be comprehensive improvement and the dominant of fair value in China's accounting standards will increased daily.