The Study On Fair Valuedisctosure Of China

With the development of economic globalization，the world economy, as well asaccounting environment, has changed dramatically. The accounting measurementmainly in the terms of historical cost can no longer meet the increasing complexmeasurement need. In2007, Chain issued the new accounting standards, in which animportant one is the introduction of fair value measurement attributes. Since the useof fair value still in exploratory stage, the introduction of fair value will havesignificant impact on accounting measurement, disclosure and reporting. What’smore, fair value measurement is inherently complex. It has different measure basisunder different circumstance, and the result will have big difference. All of these willhave larger impact on the user of financial statements. So, how to use fair valuemeasurement more properly, how to make the disclosure of information be validly,these issues are worthy of our careful consideration.Europe and the United States used fair value many years ago. They have moremature experience in using and regulating fair value, because these developedcountries have mature market as a basis. It is more flexible in the use of fair value, aswell as the regulatory. However, our country did not have these condition, becausewe still in a special historical period. So most of the domestic scholars believe thatthe historical cost cannot be abandoned, and the introduction of fair value should beappropriate. We cannot be blind to learn from the experience of other counties, andthe use of fair value should be strictly limited.Combined with the current hot topic of financial crisis, this paper analysis theadvantages and disadvantages of fair value measurement in the practical applicationprocess, and then point out the current situation and existing problems of fair value information disclosure. Here is some suggestion to solve these problems. Firstly, wehave to foster the sound market system, which is the survival basis of the fair value.Secondly, we must improve the fair value measurement system. The practice can besuccessful only under the correct theoretical guidance. What’s more, accountants usethe fair value in most of time.Their quality level is directly related to whether thefair value measurement can be promoted in our country. The most important is thatthe relevant government agencies should develop comprehensive guidelines tostrengthen the reliability of fair value information.