The Financial Impact Of Investment Property Measured At Fair Value

In recent years, the rapid development of real estate industry has attracted the attention of individual investors. More and more companies transformed the investment property measurement model to make profit. In order to standardize the investment real estate market, China’s relevant policies and regulations gradually increased the relevant provisions of the investment real estate. The promulgation of the new "accounting standard for business enterprises" is the significant step towards to the international convergence of accounting standards. Among them, an important symbol in the convergence process is: the rules require company investment real estate shall be separately presented, with fixed assets respectively disclosed in the notes. At the same time, the new guidelines increase a new measurement model- fair value measurement model of the investment real estate.Problems of fair value theory and its application in practice are the keys to the research at home and abroad. Some companies began to adopt to the fair value for subsequent measurement, but the ratio is still low. With the high-speed development of our country’s real estate industry, the housing prices continue to rise. However, due to China’s real estate market development is not sound enough, coupled with the volatility of the market, to bright with the fair value of an investment real estate. In the choice of the investment real estate companies using the fair value measurement are seem to be very careful. However, due to the limitations of traditional historical cost measurement, the fair value is not be used widely. With the changing of the market, great changes have taken place in the balance sheets of measured at the historical and the fair value measurement is put forward and become very urgent and necessary.This paper first analyses the relevant research on investment property and the further study of the theoretical background of fair value, fair value measurement model and the characteristics of economic consequences, and on the overall analysis of the current application of fair value measurement model in our real estate industry and the impact on the company, and the existing problems in the process of transformation model. The paper proposes the corresponding improvement measures.