Earnings Quality Research-based Investment Real Estate In The Fair Value Measurement Model

2007the promulgation of accounting standards can be described as a milestone in the construction process of Accounting Standards, marking the basic convergence of accounting standards with international norms of Chinese enterprises, but also the inevitable result of China need to adapt to the market economy and globalization, the economic tide. The Accounting Standards for a complete revision of one of the highlights is the introduction of a wider range of fair value measurement. However, the2009global financial crisis makes people begin to rethink the fair value of fair value is really better than the historical cost, in a strong fight back under the accounting standard setters, the various facts that the use of fair value does not exacerbate the financial crisis. The Enterprise Accounting Standard No.3for the first time regulates the investment property measurement. But for the subsequent measurement of investment property to take what measurement attribute, theorists and practitioners disagree. As of the end of2010,27listed companies using fair value measurement of investment property, I hope that in the limited sample analysis reveals that the fair value of the use of investment real estate experience and put forward relevant suggestions for improvement.On the basis of previous studies, this paper first reviews the research on the fair value and earnings quality at home and abroad, and then clarifies the relevant concepts and theories, while exploring the China real estate and real estate appraisal market developments. According to earnings response coefficients model and modified Jones model, as well as the use of2007to2010a total of four years of data, we were to test the fair value of investment real estate use value relevance and earnings management margin.This article uses SPSS17.0statistical analysis software, the results of correlation and regression analysis, the author found that:(a) investment property yields and the earnings response coefficients, indicating that the use of fair value of investment in real estate did not significantly improve the surplus value of the information;(b) independent assessment of the relationship between the investment real estate rate of return and earnings response coefficients are not significant (c) real estate mortgage investment property yields and the earnings response coefficients is very not significant,(d) investment real estate, net rate of change in operational accruals significant positive correlation, indicating that the sample companies have a fair value measurement of investment property to manage earnings;(e) an independent assessment of accrued profit on the investment property net rate of change in the operational sense of the negative correlation, suggesting that to some extent on external assessment institutions to curb earnings management.(f) real estate mortgage investment real estate, net rate of change in operational profits accrued no significant effect.For the above empirical results, and before the related theoretical analysis, the paper also made a number of recommendations for improvement. The innovation of this paper is to use the2007-2010Shenzhen and Shanghai four years subsequent measurement of the listed companies’financial data using the fair value of investment property. The inadequacies of this article is the sample size is too small, the model should be further extended to explain the variable needs to be improved, failed to take account of regional disparities of the real estate industry and our special institutional background, there are some errors on the statistical results. However, the above is my future research areas for improvement.