The Research On The Application Environment Problems Of Fair Value

Accounting environment is the objective conditions of existence and development in which accounting generated. With the rapid economic development, particularly technological innovation and financial innovation, the historical cost measurement attribute has become increasingly unable to meet the information needs of report users. Accounting for each significant change in the environment has given rise to new accounting requirements and reforms.The changes of accounting environment have a significant impact on accounting theory and accounting practices, while the fair value is the product of accounting changes in the environment. Accounting changes in the environment have made the traditional measurement model difficult to adapt to the needs of economic development. In order to adapt to the new accounting environment, the accounting standard-setting bodies led by FASB proposed the fair value——a brand-new measurement attribute and has conducted thorough and the extensive research to it.Since the fair value was first introduced in China in 1997, people begin to discuss the applicability of this new measurement attribute in our country. Subsequently, the application of fair value in our country is three waves to a single stroke.It has gone through a "first used and dumped, abandoned and later used" such several stages. As the world economic integration and globalization of capital markets, International study on the fair value has changed from"whether to use it"to"how to use and improve it better". Our country also stepped up with the pace of convergence of international accounting standards. In February, 2006,our country issued corporate accounting standards,and its biggest highlight is the re-opening of the fair value.However,after the global financial crisis triggered by the U.S. subprime mortgage crisis, the finance and the accounting profession have the dispute on whether to continue to use the fair value . The financial circles thought that the fair value was this crisis's direct root, and request to cancel or the suspend the use of fair value. While the accounting profession thought that the financial crisis was an economic issue rather than accounting issues. Although the fair value is the butterfly of the crisis, it is not the root of the crisis. Thus they appealed to continue to use the fair value. Our country's academic circle has also carried on the discussion to the fair value in our country's application environment and the application difficulties.Then do our country have the soil of the application of the fair value? Under the financial crisis,the fair value should follow what course? This article is precisely under this background, with such a question, and has carried on the discussion to the fair value in the domestic and foreign application environment and the development condition. Simultaneously this article has also given the suggestion for the fair value in our country's application, and draws the conclusion finally that the fair value will still measure the future.