The Application Of Fair Value Measurement In The Investment Real Estate Of China

In recent years, the rapid development of real estate industry has attracted the attention of individual investors, companies and institutional investors, and a growing number of companies seek new profit growth point through the investment real estate for the company. In order to standardize the investment real estate market, China’s relevant policies and regulations gradually increased the relevant provisions of the investment real estate."The promulgation of the new accounting standards for business enterprises" in China is an important step towards convergence with the international accounting standards. Among them, an important symbol in the convergence process:the provisions of the company should be the investment real estate as an asset separate presentation and disclosure, and fixed assets in the statements notes. At the same time, the new standards introduced a new measurement model of fair value measurement model for measurement of the investment real estate.Theoretical issues of fair value measurement and the application in practice is the focus of domestic and foreign research. Since the promulgation of new accounting standards, China has been using the fair value measurement on its holdings of investment real estate, but in general the number of Companies in the proportion is still low. Although this year to the development of China’s real estate industry quickly, prices continued to rise, but, because of the development of our real estate market is still not perfect, to obtain the fair market value of the higher cost, volatility and market, fair value is formed using the fair value measurement of the investment real estate changes after profit volatility loss the company is larger, in terms of selection is still very cautious in the use of fair value measurement of the investment real estate.The company held by the investment real estate through the fair value of the existence of the problem, the reason, the real estate industry to careful selection of investment real estate fair value measurement model and the feasibility of the fair value of the future development trend of a more comprehensive analysis, this paper researches on the existing literature review, in-depth study of the theoretical background fair value, fair value measurement model and the characteristics of the economic consequences, and the real estate industry as the research object, by adopting the method of case study, focuses on the analysis of the impact of new accounting standards on measurement pattern of the investment real estates. From the analysis of the current situation, the application of fair value measurement in our real estate industry, the influence on the company’s suggestions to solve these problems, and puts forward the prospect of future fair value of investment real estate. Because the sample size is at present our country real estate industry real estate investment for the use of fair value measurement limitations, difficult to use large samples, at the same time, for further in-depth analysis on the companies using the fair value measurement model, this paper chooses the typical case-CNAC estate were analyzed.The real estate industry of the investment real estate are subsequently measured at fair value of AVIC real estate (000043) as the research object, first studies the use of fair value measurement on the financial impact of the company, and the applicability and rationality; secondly, by analyzing the change of asset structure analysis of the measurement model of business transformation the transformation of development strategy; finally further extended to the case, combined with the current development of China’s economy, the use of fair value measurement model provides the empirical evidence and theoretical reference value for future large-scale company.