Enterprise Fair Value Of The Internal Control Framework To Build

The fair value has been a hot and difficult issue in the international accounting field since its birth.The breaking out of the U.S "credit and savings crisis" vigorously promoted the application of fair value in the late 1980s.In the beginning of 1990s, the United States first pulled the fair value into the financial instruments accounting standards, the International Financial Reporting Standards also successively used the fair value in a series of criteria. Fair Value was recognized and utilized in a growing number of countries and regions. However, in recent years there presents the financial embezzlements unceasingly in domestic and foreign capital market which use the fair value to control the profits, the most important reason is shortage of the internal control of fair value system. On March 2,2007, the Internal Control Standards Board of Chinese Ministry of Finance issued "Internal Control Standards-Basic Standards", which made explains the internal control practices of 26 projects including fair value. On April 26,2010, Ministry of Finance, Securities and Futures Commission, the Audit Commission, China Banking Regulatory Commission, China Insurance Regulatory Commission jointly issued a "complete internal control guidelines." The complete guidelines, including eighteen "Application of internal control guidelines", "Evaluation of Internal Control Guidelines" and "Internal Control Audit Guidelines", together with the previously announced "basic norms of internal control", which means the system of internal control of Chinese enterprises which adapts the actual situation of our country enterprise and fuses the international advanced experience is basically completed. However, the specific norms of internal control of fair value has not made specific note. This paper main researches the building of framework of the fair value internal control in the company, in order to explore a reasonable way to protect the reliability of fair value and ensure the healthy development of fair value accounting and the capital markets. This paper is divided into six sections. The first chapter is an introduction, which introduces the meaning and context of this research, ideas and methods, and pointed out that innovation of this paper; the second chapter is the rationale, which introduces the history of the evolution of the internal control and the basic elements of internal control framework including control environment, risk assessment, control activities, information and communication, supervision. Then the chapter introduces the content of the fair value and the relevant provisions of method to determine the fair value in domestic and international guidelines; the third Chapter first introduces the provision of accounting information quality essential feature in domestic and foreign countries, and then analyzes influence of the fair value to the accounting information quality of China. On this basis, pointes out the necessity and urgency of establishing the internal control of fair value in our country; the fourth chapter introduces the object of the internal control of fair value,and then designs the framework of the internal control systems of fair value in aspects of the personnel division of labor and responsibilities assigned, the fair value of the acquisition, review, feedback and communication, information disclosure and supervision; the fifth chapter first introduces application of fair value in Accounting Standards in our country and the main problems of the use of fair value in companies that exist, and then puts forward the proposal which ensures the running of internal control of fair value in aspects of environment, control activities, information and communication and supervision. Chapter VI is the conclusion which main summarizes and makes a conclusion of the whole paper, and at last points out the shortcomings of this paper.