The Study On Fair Value Measurement Issues In Inactive Market Of Our Country

The outbreak of the financial crisis makes national standard-setting organizations cope with the fair value measurement issues in inactive market mapped by the financial crisis, and then ultimately starts the study on fair value measurement issues in inactive market, which leads the issues become the key points and difficulties in carrying out the fair value in a fully and effective way.The paper on the base of analyzing the related concepts of fair value measurement in inactive market,presents five major theoretical foundations of fair value measurement in inactive market, including information asymmetry theory, market environment theory, market participants theory, assets appraisal theory and market failure theory. From the analysis of fair value hierarchy and valuation techniques found that the second and third levels of fair value are mainly used in the inactive market of our country and the cost method of fair value valuation techniques is not applied to the inactive market generally. In addition, there are no one-to-one correspondence relationships between the fair value hierarchy and input value it uses, the fair value hierarchy and valuation techniques. Based on the analysis of the theories, it puts forward the dilemma of fair value measurement in inactive market, including the special problems of emerging economies in Chinese market circumstances, increasing application difficulties of fair value hierarchy theory, non-standard valuation techniques, makes it difficult to obtain the real exit price, the Internal supervision environment of enterprises is imperfect and comprehensive quality of accountants which needs to be further improved. At the same time, it puts forward the corresponding countermeasure according to the dilemmas which fair value faced in inactive market.