The Application Analysis And Its Influence Of Fair Value Measurement Model In The Subsequent Measure Of The Investment Real Estate

With the development of current real estate market and the fluctuations of theprice of real estate, it can be not only more fair and objectively to reflect the status ofenterprise assets, especially the real value of the investment property, if theenterprises use fair value measurement model, but also can promote the convergenceof accounting standards between our country and the international, besides it’s alsothe requirement to adapt to the current economic and social development.Firstly, this article introduces the concepts and related theories of investmentproperty and fair value, so that the readers can have a basic understanding of the fairvalue and the investment property. Then, fair value will be compared with thehistorical cost, in order to clarify the advantage of the fair value pattern to theinvestment property, at the same time related regulations about the adoption of thefair value pattern of our country will be compared with the international accountingstandards, so that readers can understand the reason that the fair value be usedcarefully in China. And then, this article analyzes The implementation of newaccounting standards: on the one hand, the present situation of execution is described,then, the reasons for this situation is given, both the external and internal.Thenpointing out all sorts of problems that appears in the process of implementing the newstandard, all of above instructs that it still exists many difficulties to overcome in theapplication of fair value measurement model. On the other hand, using data andmodel to perform quantitatively analyze of the influence between using fair value andthe net profit,as well as stock price, it is concluded that using fair value measurementmodel has indeed an impact to the enterprise’s net profit, and its stock price.From theresult of the regression analysis of price model,we can conclude that, after adopting the fair value pattern, the ability to explain the volatility of stock of net assets pershare is significantly enhanced compared with the net income per share, thisinterprets the enhancement of accounting information correlation,at the same time, italso to some extent improve the importance of the concept of assets and liabilities.Finally, to promote the use of the fair value pattern in our country, this article putsforward the corresponding countermeasures and Suggestions.Therefore, under the trend of economic globalization, promoting the applicationof fair value model of listed companies in our country is conducive to thedevelopment of the company, of course, this also is the inevitable trend of the currentaccounting internationalization, in order to strengthen the convergence of accountingstandards between our country and the international, We should take active measuresto overcome various difficulties, guiding the use of fair value in our country gradually.