Study On The Application Of Fair Value Measurement After Economic Crisis

Fair value accounting theory has always been a hot topic of discussion. However, after the economic crisis, due to the special nature of the fair value measurement and amplification of the crisis, it is once again pushed to the frontier. According to the impact on accounting profession and the financial sector brought by the financial crisis,this paper reviews the development process of accounting standards in China and the United States. Then, we focus on the improvement on accounting standards after the international financial crisis.Through the impact of economic crisis on the development of fair value and the conflict from various interest groups, we analyze the problems and causes of fair value measurement before and after the economic crisis. With the example of the Bank of China, this article first explains the different measurement methods the bank adopted for financial instruments after economic crisis. Then we analyze its impact to China's banking industry due to the economic crisis. Finally, we prove the impact to financial sector development from accounting point of view. By comparing the debate put forward by the three parties, this paper presents such a conclusion:To some extent, the fair value enlarges the loss of the economic crisis, so all stakeholders can clearly understand the losses caused by the economic crisis. But what we should do is to grasp the opportunity to improvement of the fair value instead of getting back to the measurement of historical cost.Through the study on fair value measurement principles and practical application of fair value, we recognize the fair value measurement still has many defects and deficiencies. Such as the feasible use of the fair value in practice, profits manipulation, the risk, the tax coordination etc. In this paper, the following measures are taken:Such as strengthening the construction of supporting facilities, the implementation of comprehensive income report, the introduction of value of risk management, coordination of tax and accounting etc.In short, the economic crisis is a timely wake-up call to the application of fair value, we should sum up the lack and make continuous improvement.And we convince that with the development of economic progress, fair value is increasingly becoming an important measurement from now on.