Application Research On Fair Value Measurement Mode Of The Investment Real Estate

With the rapid development of economic globalization, accounting environment has gone through huge transformation. Investment property accounting method and fair value measurement have gone through "first used and dumped, abandoned and later used", which is closely related to the transformation of accounting environment. The new accounting criterion was issued in 2006, China brought in the concept of investment property, and anew applied fair value mode. The two highlights represent the large influences into accounting environment by economic globalization, and provided evidence for investment real estate and its application pattern. With the fast development of investment real estate, perfecting the fair value model based on the difference of social environment, regions and market, concern the economy of the industry, district even the whole country.Scholars at home and aboard had done a lot of researches into investment property and fair value model, mainly focus in discussing about the advantages of applying fair value model and historical cost measuring model and empirically study the value relevance and reliability. This article does analysis and research on the application of Fair value model in the investment real estate. First, they surveyed the annual report from year2009 to 2012 of A-Share Companies in Shenzhen and Shanghai Stock Exchange, and got the relative data, and then analyzed the current situation of the application of Fair value model in the investment real estate. By analyzing the current situation, they found that most companies tended to use historical cost measuring model to do the subsequent measurement of investment real estate. The reason why fair value model cannot be used as widely as historical cost measuring model has been analyzed on a macro level, which is as follows:The value theory system is not sound. The level of professional market assessment is limited. Market supervision system is not sound. In order to find the reason from micro level, this article makes a comparison between fair value model’s effect on the financial index and that of historical cost measuring model. According to the financial statement of china listed company, manually calculate the related indicators of debt paying ability, profit ability, operating ability and growth ability and make comparisons through graph, then analyze the effect of these two models to financial index. After analyzing, we find that fair value model has bigger effect on corporate profit. Thus, article tries to establish the price model of share price per share and net asset value per share and net earnings per share. By choosing 21 companies as sample, it makes regression analysis and verifies if fair value model has the value of incremental compared with historical cost measuring model.Via application analysis, it is obvious that one the one hand fair value measurement model has an effect on investment property, which restricts its application; on the other hand relative department of the government could not offer criterion on the fair value measurement mode. Therefore, the paper put forward some relative suggestions to perfect fair value measurement model of investment property. At the micro level, firstly, strengthen up the quality of accountants, and effectively lessen the estimated cost of value fair value; Secondly, strictly check the corporate bill, and prohibit adjusting the profit and loss of fair value; Thirdly, focus carefully the tax policies, and reasonably reduce the tax bearing of investment property; Fourthly, standardizing and merging the system of statements, and decrease the pooled burden of corporate statements. At the macro level, for the starter, standards and criterion shall be improved to set up correlation systems; and then deepen corporation with various circles, and upgrade the assessment level; besides, setting up effective system to enhance supervision towards fair value.