The Research On The Application Of Fair Value In Chinese Companies

Accounting theory and practice cannot leave the market financial environment. Thechange of market environment is inevitably, it lead to the change of the practicalapplication of accounting. Along with the development of market economy and society,and the financial product innovation, bring financial market prosperity. A singletraditional historical cost measurement model to provide accounting information due to alack of correlation, questioned by accounting circles: in the capital market, often leadingto users of the information decision error. The1990s, the United States will be the firsttime the fair and equitable value measurement model applied to accounting standards. Inthis environment, the fair and equitable value measurement model has the advantages ofhighlights. The fair value of the large-scale use is the trend of The Times.Our country to the use of the fair and equitable value measurement modelexperienced three stages. The first stage in1998, the preliminary adopted；The secondphase,2001-2005years of stop using；The third stage, in2006, the Treasury issued"enterprise accounting standards" in reference to the fair value, and basically theinternational accounting standard convergence. In this revived,38specific standards anda basic standard, there are22items directly or indirectly mentioned the fair value. Fromthe use of smooth, we can see that the fair value of the necessity of the application andsee the application problems. To take into account the actual situation in our country,make more suitable for our country’s economic criteria, financial development.This paper based on the background and the research results at home and abroad, onthe basis of the fair value of the first combed the development course, introduces the fairvalue of the related theory, and explains the characteristics of the fair value, comparedthe fair value measurement attribute and other relationships, and from the presentsituation of our country that the fair value measurement model and the necessity of itsapplication. And then combining with Shen Zhen development bank of the fair value ofthe shares application practical cases, and find out the specific application, the existingproblems of the fair value of the main existing overall application scope is limited, thereliability and the presence of suspect the possibility of earnings management. And from the institutional environment and standards themselves and listed company three aspects,analyzes the reasons, at last proposes the corresponding solution countermeasures.