Research On The Several Problems Related To Fair Value Measurement In New Accounting Standards

In the recent decades, fair value measurement has always been one of the mostchallenging hot topic and difficult problem in the international accounting theoreticalforefront. Because fair value measurement can provide highly relevant information for usersand help them to make the right decisions, now it has become one of the accepted accountingmeasurement attribute in the developed countries. The application of fair value went through“introduction，evasive，re-introduction” tortuous process in china. China’s Ministry ofFinance on February15,2006has promulgated “Accounting standards for businessenterprise—basic criteria” and38concrete criteria (hereinafter referred to the new accountingstandards) and regulated the listed companies in China began to implement since January1,2007. The one of the prominent characteristics of these criteria is that the fair value has beenidentified as an independent measurement attribute in accounting measurement and fullyutilized. However, comprehensive application to fair value confronts with some degree ofdifficulty. because of the insufficient reliability and operability of the fair value itself.Based on the background, at the beginning, this paper analyzes the definition of fairvalue from different institutions, explores the truth of fair value, expounds the internaltheoretical basis of the application of fair value in the accounting measurement and putsforward and analyses four problems needed to be solved about accounting in the practice offair value accounting..Then, this paper analyzes the request of the new accounting standards for the practice offair value accounting and takes the manufacturing companies listed in shenzhen securitiesexchange in2006、2007and2008as research samples, establishes return model and pricesmodel, from the angle of investors, examines effect of the listed companies applying fairvalue in the new accounting standard. The empirical research conclusion as follows:1Findings from the return model indicate that since the listed company applied fairvalue in2007and2008according to request of the new accounting standards, the jointexplain ability of the accounting income and income change about stock yield rate increasedyear by year and the relevance is more and more strong.2Findings from the price model indicate that the listed company applied fair value in2007compared with2006, the joint explain ability of EPS and BVPS about share priceimproved significantly, accounting data and share price became more relevant.0n thebackground of global economic environmental deterioration In2008, the joint explain ability of EPS and BVPS about share price is not as good in2007, BVPS, the relevance ofaccounting data and share price reduced, but still relevant.The above research results suggest that the application of fair value in new accountingstandards improves the relevance of accounting information, enhances the decision-makingusefulness.Finally, this paper puts forward the study conclusions and policy recommendations.