Fair Value Of Use In Our Practice

Accounting Measurement is the soul of accounting. The key point of accounting measurement is how to choose accounting measurement's mode and the selection of measurement attributes is the core concept of the selection of accounting measurement's mode. Therefore, fair value, an aggregate on multiple measurement attributes, has spontaneously become the key study subject.The author attempts to study how to perform fair value in accounting measurements according to the specific characteristics of different accounting transactions and its theoretical foundation during the gradual transition from a single historical cost accounting measurement model to the mixed mode of historical cost and fair value accounting measurement. This paper will be pointed out that we can promote the use of fair value under the present condition, then obtain the method of fair value for realistic application in order to transform the accounting measurement mode from the single mode to the multiple modes.This paper is divided into six chapters. The first chapter is to introduce the background of the research and its significance. The second chapter is to conduct the conceptual analysis of fair value and introduce its theoretic development, also pointed out the relationship between fair value and other measurements. The third chapter is to describe the profiles of fair value used in the United States and China, introduced the tortuous course of applying fair value in our accounting practices and analyze the reasons for that. Chapter 4 is to analyze the relationship between fair value and the market environment and points out the current market environment in China can be applied to the fair value measurement attribute. In chapter 5, the author studies how to apply fair value to specific accounting practices in China, according to the specific characteristics of different accounting practices and its theoretical foundation. Finally, in chapter 6 the author raises her advises of how to implement fair value in accounting measurements in China effectively.The author hopes this paper will have a certain guiding significance on fair value applied to accounting measurements in China.