The Research On Fair Value Measurement Attribute And Its Application In China

For a long time, as the common concerned problem of the accounting profession andthe finance circle,the fair value has long been the topics in the academic circles. Whetheracademic or practical field, research and discussion of the fair value seems to have neverstopped.Nowadays, with the advance of research, the fair value and the related theory isalso gradually mature, people are generally recognized as a measurement attribute has atimely feedback and prediction. However, the outbreak of the subprime mortgage crisis in2008USA once again caused a deep thinking of the fair value, and was regarded as"target" by the financial community, and then the fair value measurement attribute wasalmost arrived into the "dead end".With the passage of time, the financial crisis caused thediscussion of the abolition of fair value has seems faded away, then how to make good useof fair value become the main direction of the current.On January29,2014, China’sministry of finance issued“The Accounting Standards for Enterprises No.39--Fair ValueMeasurement”, which from July12014applied in all the enterprises in China,andencourage overseas listed companies perform ahead of time.The move of the ministry offinance, has finally added a new member to the accounting standards after eight years, atthe same time, No.39is the only one of standards which regulation the measurementattributes, which explains the importance of the fair value too.In view of this, this articlefirst focuses on the theory related to fair value, then talk about the application status in thereal estate investment and the financial assets, analysis of existing problems, and on thisbasis, provides the relevant opinions and views.There are six sections in this article, themain content is as follows:(1)Elaborated the paper research background and significance;(2)Introduces the research status of fair value measurement attribute at home andabroad, including the historical process of the relevant provisions and the application of thefair value;(3)Mainly introduced the theory related to the fair value, including emergence of thefair value, the definition and the development, the characteristics, the theoretical basis, andanalyzes the relationship between fair value and other measurement attributes and otherrelated theory;(4)Mainly introduced the current application of the fair value measurement attributesin the investment real estate of our country, and based on this, advice that the fair value should be widely used in the investment real estate and that the changes in fair valueshould not be confirmed into the Income Statement but into the Owner’s Equity;(5)Mainly introduced the current application of the fair value measurement attributesin the financial assets of our country, and based on this, consider that the changes in fairvalue gains and losses which confirmed into the Income Statement does not fit relevantrules, and should be confirmed into the Owner’s Equity;(6)Elaborated the main point of this paper that the changes in fair value gains andlosses should be confirmed into the Owner’s Equity and add the "Statement of Changes inCapital Reserve" which include all the changes in capital, to enhance the usefulness of thereport. In this chapter, I also illustrates the limitations of this article, so that I can continueto related theoretical study in the future.