A Study On The Using Of Fair Value In China

Fair value accounting has always been a hot issue of the International Accounting. Along with the economic development, especially with the constantly emerging of derivatives, historical cost which has long-term occupied the central position of the accounting measurement is gradually difficult to cope with the situation.In order to maintain the quality of relevance and usefulness of accounting information, the standards setting body have gradually increased the intensity of the use of fair value measurement. Therefore,fully applying fair value is the general trend of the world.Since fair value came out in accounting standards in 1997, it has become a high-profile accounting problem in China. As 2006 new accounting standards promulgated, the theory and practice of accounting profession have begun discussions on the existing problems and solutions caused by applying fair value in our country.But compared with that in developed countries,theoretical study and practical operations on fair value are relatively backward,Which makes the domestic and international comparative study of application of fair value even significant theoretically and practically.Using a standardized methodology,this paper is based on historical research on the basis of international comparative perspective,analysing the impact to the application of fair value caused by the difference of economic development between developed countries and China, as well as proposed countermeasures and recommendations for using fair value more effectively in our country.