Fair Value Measurement And Countermeasures

As one of the hottest issues in international accounting in the recent decades, fair value measurement received unprecedented attention and discussion during the financial crisis in 2008. The research and application of fair value face both challenges and opportunities.All along, the introduction and application of fair value were given full attention. In February 2006, the Ministry of Finance of China issued the "Accounting Standards for Business Enterprises (2006)", and applied fair value in Real Estate Investment, Mergers and Acquisitions, Debt Restructuring, Exchange of Non-monetary Assets, Financial Instruments and so on, which became one of the highlights of the new accounting standards system; in September 2006, FASB issued SFAS No.157 "Fair Value Measurement", which had a profound impact on theoret ical research and pract ices of fair value internat ionally; in May 2009, IASB issued "Fair Value Measurement (Exposure Draft)", which explored further into the research and applications of fair value; in May 2011, IASB issued IFRS13 "Fair Value Measurement".Currently, the research results of the "Fair Value Measurement" projects carried out by IASB and FASB are the most important ones in fair value worldwide. This paper compares the results of these two projects, then finds that they have similar regulations within some aspects. However, there are still some differences between them. Through a comparative analysis, this paper summarizes their similarities, differences and inspirations.The re-introduction of fair value in Chinese new accounting standards is inevitable as a part of the global economic integration and the international convergence of account ing, which is in line wi th our current economic environment and is conducive to the future development of the Chinese financial markets. However, it should be noted that there are still some shortages i n the application of fair value in Chinese new accounting standards, for example, the broad and ambiguous definition of fair value and the lack of an independent and specific 'fair value measurement" accounting standard and so on.Based on the concept of "Roadmap for the continuing convergence of Chinese Accounting Standards for Business Enterprises with International Financial Reporting Standards", sustained attention and study of the international developments and results of fair value will be advantages in the realization of the ongoing and comprehensive convergence of Chinese Accounting Standards with International Financial Reporting Standards, help the development and improvement of our accounting standards system, and improve the quality of accounting information in our country.This paper begins the research from the background of the development of the financial reporting goal and the international convergence of accounting, traces the origin of fair value, deeply studies the theoretical basis and the defects of fair value measurement, discusses the methods of fair value measurement, and carries out a comparative analysis of the requirements about fair value measurement in domestic and foreign accounting standards. At last, this paper provides recommendations and countermeasures to the applications of fair value in consideration of the actual situation in our country.