Research On The Measurement Of Fair Value Of Investment Real Estate

Since 2006,the third edition of the Accounting Standards for Business Enterprises-Investment Properties,(2006 Revision,CAS3)has divested investment properties from ordinary long-term assets and provides for the choice of cost model or fair model,the selection of the two models has always been the focus of accounting theory horizon and practice horizon.However,CAS3 did not determine the fair value model as the main model of measurement,but also the lack of specific application guidance,investment properties,in practice and not widely used fair value model.In 2014,the Ministry of Finance announced the Accounting Standards for Business Enterprises No.39-Fair Value Measurement(CAS39,2014),redefining the fair value,supplemented by valuation technology and accounting information disclosure.Perfect the overall framework of the fair value attribute.Since 2014,39 accounting standards have been implemented for more than two years,investment properties fair value measurement in the accounting practice has also been a certain development.Therefore,it is of great theoretical and practical significance to study the fair value measurement of investment properties.This paper first studies CAS3 and CAS39 accounting standards,focusing on CAS39 accounting standards on the changes in the fair value,through the analysis of the use of fair value measurement of investment properties feasibility and necessity under China's current accounting standards.On the basis of this,this paper analyzes the problems of the listed companies in China,such as Hainan Airlines,analyzes the problems of the listed companies in the specific application process: the problem of the conversion date,the transaction problem of the related party transactions,the potential tax burden of the enterprises caused by the change of the fair value,The contradiction between the input value hierarchy and the valuation technique.In view of these problems,this paper puts forward some suggestions for improvement: formulate the policy ofchange day which meets the requirements of the standard and reflect the essence of the economy;determine the appropriate valuation technology;continue to strengthen the consideration of rent factors;improve the investment properties information disclosure.Finally,this article explores the implications of the case study based on the state management and the enterprise.This paper concludes that although the current application of fair value measurement model of investment properties,in accounting practice is not perfect,it can not deny the positive impact of CAS39.These imperfections will follow the long term implementation and fairness of CAS39 Value measurement model in-depth study has been gradually resolved,in the long run,the fair value model will become the dominant model.