Listing Corporations In China To Use The Fair Value Analysis

Listing corporations in China fully implement the new enterprise accounting standards from January 1,2007. The main difference between the new accounting standards for business enterprises and the original system implemented in China is the new accounting standards system provides comprehensive use of fair value measurement as the accounting and auditing standards. The fair value measurement widely implemented by the western countries exposed the shortcomings in exacerbating the financial crisis which was broken out in 2008. In this context, China re-opened the fair value measurement which should not only face the inherent problems in the use of fair value measurement in the incomplete market environment, but also face the role and the existing impact of the fair value in the process of the gradual development of the capital market, especially whether it would threaten on our Financial System Risk in the extreme market.The current situation for practical aspects of the use of fair value is that listing corporations consider that the implementation of fair value measurement will influence the valuation of listing companies and make hidden assets which historical costs cannot be measured previously dominant Because of complement of the fair value measurement, the difficulty of implementation and the practical application of the fair value measurement standards are not uniform.According to the above background, the author analyzes and points out the problem which existed in external, endogenous and personnel and other aspects in the practice of fair value by combining theory with practice and e case analysis. In this paper, first of all, the related theories of the fair value are explained and analyzed, mainly including the definition of fair value in China and other countries or regions, the reason of the adoption of new guidelines for fair value, characteristics of fair value, the research direction of Chinese scholars and Western scholars on the fair value measurement, and the differences and connections of fair value measurement attributes and practical application with other measurement attributes. Secondly, the author takes cases to analyze and study the practice of fair value by listing corporation in China in mergers and acquisitions, debt restructuring, financial assets, investment real estate, non monetary exchange, share based payment, financing leasing in the financing process. Finally, combined with application problems raised in the process of practical by the listing corporation, the author puts forward feasible countermeasures of the improvement of the market environment, perfect legal system and supervision system, the theory system, corporate governance structure, the listing Corporation valuation techniques and methods, the training and education for countermeasures.