Research On Fair Value And Its Application

Since the 1970s, fair value has been becoming one of the most important parts of many accounting standards in many countries, such as International Accounting Standards and Financial Accounting Standards in America. In our country, fair value was also involved in some accounting standards directly or indirectly. But since those standards were established, they had been used as the means to create mendacious accounting information in order to cheat the users. Therefore, the ministry of finance of our country-the legal maker of accounting standards-had to decrease and restrict the use of fair value. on it in our country lags as well practical operation. So there are deep theoretical and practical significance in studying on fair value measurement attribute. In February 2006 the Ministry of Finance issued the new accounting standard system, including a basic standard and 38 specific standards and the new system of accounting standards was requested to carry out in the listed companies first since January 1, 2007. New accounting standards made a new breakthrough in many areas, among them the application of fair value can be said is the most striking aspect. But our country fair value measurement issues on the theory and practice of research is still relatively stagnant, which makes the fair value of the study and its application has an important theoretical and practical value.This paper is divided into six chapters. Its main contents are summarized as follows:Chapter 1: Introduction. Introduces the research background and research significance of the fair value, and the domestic and foreign present research conditions, research methods, research ideas,the main problems solutions and so on.Chapter 2: Fair value theories outlined. This chapter primarily discusses the concept of fair value, fair value background, fair value essence attribute, fair value characteristic. Emphasizes the detailed exposition of the fair value essence attribute from economics perspective and points out the fair value in accounting is not the real value, but the equilibrium price of the Western Economics and the exchange value of Marxist Economics.Chapter 3: CAS and IAS fair value application difference analysis. This chapter makes a comparative analysis about the application of the fair value in our country and IAS specific standard and points out that the fair value of CAS, whether the scope of the concept or specific applications is fully from the IAS, reflects the general direction of convergence with the IAS.Chapter 4: Method of determining fair value. This chapter discusses SFAS157 in the fair value determination method, prerequisite, principles and the basis of determining levels. Put the method of determining fair value in order according to the degree of reliability, and make the reference for selecting the method of determining fair value.Chapter 5: The main obstacles and evaluation of fair value application in our country. This chapter primarily discusses the reliability of fair value, fair value and profit manipulation in detail and points out that fair value is not only relevant but also reliable and fair value is not necessarily linked to profit manipulation. It also analyzes and evaluates the fair value application in CAS and points out that the fair value application in CAS is appropriate and prudent, under the premise of adhering to convergence with IAS, taking the actual situation in China into account, do not pursuing identical, but maintain Chinese characteristics.Chapter 6: Perfect application of fair value in the proposal in our country Based on the analysis of the fair value and its application, this paper defines the fair value essence attribute and explores the nature of fair value by quoting from Economics. Through the detailed discussions about the main obstacle of fair value application in our country and the fair value application in the new accounting standards, this paper provides the theory and practice guidance for perfecting the fair value application in our country.