The Research On The Fair Value Application And Influences Of Financial Instruments In China

As the global economy is developing in a rapid speed, the financial instruments are becoming increasingly rich. And the innovation of financial tools is reached unprecedented levels. The traditional accounting measurement model has been unable to solve the problems of measurement of financial instruments, which had result many problems to be resolved in theory and practice.The development of the fair value has brought profound changes to the measurement of financial instruments. It can meet the decision-making demand of financial statement users because it has high level of decision-making, and thus it won wide attention and recognition. The accounting standards setting bodies of developed countries had introduced fair value into the accounting standards. China’s Ministry of Finance had introduced it into new accounting standard which was issued in2006. Its application in the financial instruments can provide better accounting information and more effective decision-making information.However, from the point of view of practical application, there are still some problems and difficulties in the application of financial instruments. In2008, the global financial crisis pushed these issues to the forefront, and made fair value into focus of the debate.The article based on the conclusion which is researched by the major accounting standards setting bodies and scholars, combined with the situation of the fair value application in financial instruments in China’s financial listed companies, analysis of the application status of fair value in financial instruments. Then according to the new classification standard of IFRS9, the author analyzes the expected impacts of the financial companies in China. Finally the article summarizes the existing problems in the fair value application of financial instruments, and puts forward corresponding suggestions, hopes to be able to provide some reference for the later research.