Research On The Application Of Fair-value In China

Measurement is the soul of accounting, the choice of measurement attributes directly influences the quality of accounting information. With the development of capital market, the enterprise stakeholders will no longer satisfy with financial information disclosed by traditional measurement, the historical cost measurement method gradually exposes some shortcomings, such as, lack of low correlation, time lag .Therefore, the fair value measurement which bases on mark-to-market attracts more and more attention, and acts extensively in the push of relevant departments, such as FASB and IASB. Because of the lateness research in China, and the lag of research on theory system as well as the application environment, it's necessary to straighten out the fair value accounting standards, and the application in practice should be exposed to improve and constraint. Based on the thesis,some references are expected to supply with the construction of fair value standards.This paper summarizes the basic principles of fair value firstly, and taking the FAS157 as typically theory, it compares the concept of fair value in the CAS with FAS, then summarizes the exclusive characteristics of the fair value, Then, combined with the Chinese Accounting Standards, it abstracts the situation and the characteristics of fair value measurement in our application, together with the several typical economic phenomena after the use of fair value measurement. And then, combined with actual situation in China, as well as the exist problems in measurement method exposed in subprime crisis ,the application environment of fair value are discussed, including the defects of fair value theory, unreasonable of its disclosure , imperfect of enterprise inner environment, and so on. At last, on account of the exist defects exposed in practice, in order to improve the application of fair value, some countermeasures are put forward, which are divided to two field, theory and practice, including the consistent research on fair value theory, formulating independent fair value accounting standards and giving more guidance, constructing internal control system against fair value measurement, speeding the establishment of counter-cyclical supervision, and launching more education about risk defense to investors continuously. All are hoped to strengthen the reliability and relativity of accounting information.