Study On The Choice And Comparison Of Measurement Method Of Fair Value Of Trading Financial Assets

With development of increasing in financial market volatility and short-terminvestment diversification, fair value measurement of trading financial assets hasbecome a very important problem in practice of business accounting, and becomefocus of accounting theory research. Although fair value measurement of the tradingfinancial assets has been valued by accounting scholars and enterprises, research inthe respect of applicability of trading financial assets’ fair value measurement methodis not very complete, especially many problems in the research of fair valuemeasurement of trading stock financial assets and bond financial assets oftransactions. So this paper mainly develops the research and analysis of the issue.Firstly, this paper compares and analyzes relevant provisions of the tradingfinancial assets’ fair value measurement of the United States of America ’s financialaccounting standards, international accounting standards and Chinese accountingstandards; on the basis of theoretical analysis, listed the financial statements ofChinese companies as the sample data, compares and analyzes valuation model ofthe trading stock financial assets such as stock discount model, residual incomemodel and price-earnings ratio model, to determine to suit to scientific andreasonable fair value’ measurement method of different kinds of trading stockfinancial assets under different environment; Similarly, based on the Chinese listedcompanies data, to compare and analyze valuation of bond financial assets oftransactions in respect of the application of B-S model and two binomial tree model,to determine the measurement methods for fair value of different kinds of bondfinancial assets of transactions under different environment. Finally, according toresults of the research of the trading financial assets’ fair value measurement, in orderto improve the accuracy of trading financial assets’ fair value measurement.