The Application Of Fair Value In Investment Real Estate

With the rapid development of the real estate market matures and the market economy, enterprises have already infiltrated into the real estate investment business, in order to understand the business of real estate investment business, correct assessment of enterprise value, investors and investment real estate-related accounting information is presented higher quality requirements. In this context, China’s Ministry of Finance will invest in real estate as a separate accounting standards, standardized its recognition, measurement, recording and reporting, aimed to clearly reflect the true value of investment property in turn reflect the true value of the business. In order to address how the fair value of a reasonable valuation issues, the Ministry of Finance in consultation with outside views, once again issued "Enterprise Accounting Standards No. 39- Fair Value Measurements." Promulgated new guidelines redefined the fair value, and the specification of the valuation method, the unification of the different measurement methods of assets or liabilities at fair value. The gradual improvement of the guidelines, so that the proper measurement of investment real estate has become China’s enterprises must face an important contentDevelopment and refinement of accounting standards followed the market economy and international law, gradually covering the enterprise independent accounting of economic and business information processing. In accounting standards and innovative at the same time, the enterprise will naturally left a lot of room for financial fraud. Some insurance companies have relied on real estate appraisal standards difference big problem, as earnings manipulation tools inflated assets. Effective decision-making for investors to obtain information, to create a fair competitive market environment, audit and supervision, improve the legal system of the relevant state agencies have brought no small challenge.Ending in January 2016, two in Shanghai and Shenzhen Stock Exchange listed company released a total of 1194 annual results notice that year more than 60% of enterprises expect full-year performance increase of not less than 10 times in the crown of shares is reached nearly 30 pre-fold increase. Throughout the past six years, the highest share performance had large losses in two consecutive fiscal years, to be known as "* ST" hat is what allows the company to take off "* ST" hat, and performance soared, so 2015 reached more than 30 times the pre-growth performance, which will be the focus of this thesis.Firstly, the concept of investment real estate research, the theoretical foundation for the analysis of the text; secondly focuses on the fair value of its own characteristics, with relevant measurement model and the application of the investment property in the balance sheet and income statement impact; and then combined to crown the shares of listed companies analyzed the impact of change on the financial statements of the measurement model and the emergence of problems in the application process; and finally make recommendations based on the above and make a summary.