Study On The Problems Of Fair Value Accounting

On the date of February 15, 2006, new accounting and auditing principles that are treated as new milestone in Chinese accounting history are issued, which signals that Chinese accounting principles are harmonized with international accounting principles comprehensively at last. On the basis of Chinese character, new accounting principles realize harmonization with international conventions in the option of accounting policies, and especially fair value accounting is appropriately introduced and it becomes the spotlight of new accounting system. It is fairly important for the theory and practice of fair value accounting applied in china to research on the problem of fair value accounting.This dissertation tries to form the framework of fair value accounting from the aspects of fair value meaning, fair value measurement and disclosure. Through the analysis of Enron scandal and introduction of SEAS 157, the dissertation comes up with the methods to make fair value accounting principles and carry out the fair value accounting in ChinaThe main contents are divided into five parts: Part I introduce the process of fair value accounting evolving and explain the meaning of fair value from the brand-new angle of philosophy; Part II research on the problem of fair value; measurement on the basis of accounting measurement theory and build up the model of fair value measurement with the use of crystal ball software; Part III analyzes the disclosure mode of fair value in new accounting principles and brings up some novel disclosure mode; Part IV explain the accounting rent theory and provides case basis for the theory by analysis of Enron scandal; Part V addresses some suggestions against making fair value measurement principles and carrying out fair value accounting by introducing SFAS 157.Through the demonstration, I have the following policy suggestions:(1) Make clear the aim of making fair value accounting principles. Principles should dominate the practice of fair value accounting in China. It should be a logistic system that comprises definition, measurement and disclosure of fair value, which offers theory and policy for making concise, effective and practical specific principles.(2) Make clear the aim of fair value measurement. New principles treat fair value as an independent measurement. However, under the condition of imperfect market-oriented economy only by means of restated value and present value have we got fair value. From relative principles we can find out the aim of financial instrument measurement is exit price in china. We should learn SFAS157 and make clear the aim of fair value measurement.(3) Reclassify hierarchy and augment disclosure. Classify fair value hierarchy clearly, enlarge disclosure scope and disclose sufficiently measurement's scope, method and premise and influence on profits, which is important for improving the whole reliability of fair value measurement(4) Focus on the research of theory of fair value accounting. Depending on Chinese reality, we should have a deeper research on essence of the theory of fair value. Meanwhile based on standard study, combining proof study, it tries to find out fixed defects in the practice of fair value accounting and bring up some constructive suggestions, which can provide important theoretical references for making corresponding accounting rules.(5) The study should be creative. We should have the spirit of creating bravely and proving carefully and abide by the practical view of dialectical materialism of Marxism. The aim is to approach the essence of theory of fair value by the cycle from practice to theory.(6) Speed up the construction of law making and law-enforcement and strengthen the cooperation between accounting principles makers and valuing principles makers and push the smooth course of valuing legislation. Enhance supervision of accounting behaviors of listed company and especially punish the criminals of profits management with fair value.(7) Ameliorate the external market. Improve Chinese capital market and financial market and promote the information construction.(8) Strengthen the construction of internal system and improve the quality of staffs. Perfect the governance structure; build up the controlling principles and disclosure process of fair value and improve accountants' qualities.