| For a long period of time, historical cost has been the main measurement mode. However, with the economic development, especially the come-forth of derivative financial instruments, it is difficult for historical cost to cope with problems arising in practice. To ensure high-quality information, standard-making institutions all around the world try to measure all the derivatives by fair value. Inspect of many difficulties and resistances, the research on fair value has never been stopped, and fair value has pervaded into the measurements of other items as well as dialing methods. Problems and obstructions which come into being of the modem financial accounting, the comprehensive application of fair value is the tendency, Nevertheless ,China started the research on fair value later than other countries and lacked experience in its practice as well. Therefore, the significance of studying on fair value makes its way into almost all spheres in China.Firstly, through summarizing international results of research and related guidelines, current situation of fair value application has been analyzed and researched in the dissertation. Results are drawn that the application of fair value in the international community is extensive and comprehensive. What's more, the application can be divided into two aspects: One is financial instruments, the other is non-financial tools. Comparing with the application of fair value in our country, Because of the market environment and other factors, the application of fair value in China is still not extensive enough. At the same time two problems about fair value application (the reliability and operability) are pointed out.Secondly, on the basis of the basic theory of fair value, the problems of reliability and operability of fair value including their definitions are researched. Then two kinds of reliability models are analyzed, the advantages and disadvantages of the reliability models are come up with, it is favorable in the process of researching fair value application. Then the order of determining fair value is analyzed, it is can be concluded the relation among reliability , determining order of fair value and market conditions.Operability is another trouble about fair value application. Current market price and the present value is analyzed, the application conditions, steps and how to determine about the methods are deduced. Then it is conclusion that the present value is a method of higher reliability and higher operability of fair value.Last but not least, suggestions are made according to improve the application of fair value in China. |
