Study On Popularizing The Application Of Fair Value In Our Country

The problem of fair value accounting is always a hotpot and a difficult problem with an extreme challenge in the front of the international accounting area. Recently, the international discussion about fair value has already stepped over the stage, in which the rationality of fair value in the financial accounting area was mainly discussed, and concentrates on the concrete technical operation aspect. The application of fair value in our country experienced ups and downs. Although the promulgation of the new accounting standard signals that the problem our research about fair value in our country faces has turned from"whether"to"how", the shadow of the bad result, which is made by the short use of fair value in our county from 1990s to the beginning of this century, has not faded away. The arguments about"fair value isn't fair"or"fair value isn't reliable"also exist in many people's mind. As the fair value is brought into our country once more, the problems we should resolve recently are: how to understand the fair value's concept correctly; how to tackle the fair value messages'low reliability problem; under the background of Chinese characteristic accounting system and companies'caution about fair value, how to popularize the application of fair value in order to provide fair value messages with higher quality and promote our country's accounting internationalization and the sound and steady development of market economy.Using the normative research approach mainly, this paper makes an all-around and in-depth study of the theory, approach and application of the fair value accounting. On the aspect of theory research, this paper creatively analyzes the concept of fair value from the logical thinking angle, in order to resolve the problems which the concept of fair value includes and lay a strong theory foundation for the generalized application of fair value. On the aspect of approach research, based on the study of the meaning and principle of fair value determination, this paper deeply investigates the approaches of fair value determination and summarizes a forward looking choosing order of fair value determination approaches combining with the fair value hierarchy, in order to resolve the fair value messages'low reliability problem. On the aspect of application research, it reviews and summarizes the condition and enlightenment of fair value application abroad roundly, and divides the fair value application at home into three stages: the stage of being brought in for the first time, the stage of being restricted, the stage of being brought in again. It analyzes and evaluates the three fair value using stages in our country. Based on the research results of the foregoing, it thinks the problem of popularizing the application of fair value in our country objectively. The author suggests that we should cognize correctly the Chinese characteristics of accounting and that controlling the profits has nothing to do with fair value. Based on that correct cognition, we should complete the external environment for popularizing the fair value in our country as quickly as possible. The author suggests that the external environment should include the economic environment, the legal environment, the cultural environment and the technological environment. At last, we should complete our country's accounting theoretical system by introducing the concept of comprehensive income, building the financial accounting conceptual framework for fair value, formulating the accounting standard of fair value measurement and clearing the applied accounting theory that the accounting criterion should be changed from institution to convention.