The Necessity Of Introducing Fair Value Into New Accounting Regulations

The theoretically research of the significance of fair value have been mature, the overwhelming majority of scholars believe that fair value measurement is progressive, with the relevance of the information, good for decision-making of users and the development of the times, fair value has been established its affirmed status. China's new accounting standards promulgated, once again opening a large number of fair value measurement results in many arguments, some support and some also considered that the time was wrong. Then, how to prove that the introduction of fair value measurement is necessary? If the measurement results between fair value and history cost do not have enough significant differences, the use of fair value measurement does not have sufficient reason, in the contrary, it is necessary. This paper is the first one to reflect the difference between fair value and history cost by empirical study, and prove that it is necessary to use fair value measurement in the new accounting standards.This paper is divided into six parts, the first part is the introduction, the second part is the literature review, the third part is the theoretical analysis, the fourth part is the data analysis and descriptive statistics, regression analysis is part V and the sixth part is the conclusions and recommendations.Due to various constraints, and other factors, the fair value of the data is difficult to acquire, in practice, the availability of data is the accounting firm's assets assessment, they are the nearest to fair value measurement results, therefore, this paper has been selected a total of 162 enterprises as the data samples, years in 2000 - 2006. This paper use the data of assets assessment of the sample enterprise as the fair value, its book value (including adjusted value), as the history cost.The article mentions two proposals in the last, the first proposal is we need to define the fair value of different assets confirmation way in details on the existing foundation, the second proposal is, according to the results of analysis in this paper, the measurement of fixed asset, the measurement of investment real estate, the measurement of biological assets and the measurement of intangible assets, they all need fair value measurement and clarifying their fair value measurement method.It should be point out that the meaning of fair value of all used in this paper is its narrow understanding.