The Effect Of The Use Of Fair Value On The Quality Of The Accounting Information In The Perspective Of Decision-usefulness View

Since the fair value has been used in accounting measurement, its definition、valuation and advantage or disadvantage has been argued till now. People alwaysfocus on the issue whether fair value can provide decision-making related information.In the final analysis is the relationship between fair value and the quality of theaccounting information. As the fair value can reflect trading matters, it is morerelevant with accounting information.It is useful to make decision that reflect theenterprise’s financial position、the managerial efficiency and the cash flow. The use offair value is the requirement of the accounting standards. It is useful to understand andamend the accounting standards. Making clear the role of fair value in the newguidelines is useful to implement and modify the accounting standards.The author focused on the effect of the use of fair value in the decision-makingrelevant view. I wrote both from theoretical and empirical aspects. At first,I analyzedthe theory of the scholars at home and abroad and expounded the theoretical basis offair value and the quality of accounting information in chapter1and chapter2.Secondly, using statistical models in the chapter3, I selected net assets per share,earnings per share, per share, return on assets, included in the frontal on the changesin the fair value of the shareholders’ equity, recorded into the profits and losses of thecurrent changes in the fair value of the forehead as financial indicators, throughcorrelation analysis and linear regression analysis, I explained the use of fair value inthe new guidelines was relevant to the quality of accounting information in capitalmarket. This paper mainly discussed the influence between fair value and thereliability of accounting information in chapter4. Using the financial data of listedcompany in Shenzhen and combined with new accounting standards, fair value wasanalyzed in those specific transaction. At the same time this paper pointed out the problems existing in the use of the fair value. In the fifth chapter, the paper drewlessons from the application of the fair value of the European Union and othercountries experience, improvement suggestions from the market conditions, legalsystem, accounting personnel professional ethics, asset appraisal process and so onseveral aspects were put forward for the use of fair value.