The Research On Earnings Management Of A Company's Investment Real Estate Under The Fair Value Model

Investment real estate is real estate held to earn rentals or capital appreciation.Due to the characteristics of investment real estate,the fair value model is a more appropriate measurement model than the cost model.It can more faithfully reflect its value,further improve the transparency of financial reports,and contribute to the economic decision making of information users.However,in practice,there are many problems in the actual application of fair value measurement for investment real estate,and the measurement of fair value of investment real estate has become a tool for earnings management of some enterprises.Earnings management behavior reduces the reliability of fair value accounting information,and thus reduces its relevance.The superiority of the fair value model has not been fully realized.Therefore,it is of great theoretical value and practical significance to study the issue of earnings management of typical companies using investment real estate fair value model.This article selects company A's investment real estate as the research object,starting from the motivation and financial impact of company A adopting the investment real estate fair value model for earnings management.We deeply analyze the problems in its application of fair value measurement,and find that the management system of A company's fair value measurement is incomplete and the internal control is in the form,the improper application of the valuation method affects the reliability of the valuation results,and the disclosure of fair value information is insufficient and lacks substantive significance.In response to the identified problems and their root causes,this paper accordingly proposes operational improvements from three dimensions:internal management of fair value measurement,selection of fair value valuation methods and valuation operations,and disclosure of fair value information.Finally,to improve the implementation environment for fair value measurement and suppress the use of investment real estate fair value model for earnings management,this paper proposes to improve the detailed rules for the application of fair value measurement in investment real estate,increase supervision over the use of fair value measurement of investment real estate for earnings management,and improve the information platform for real estate transactionsThe research in this paper helps to better understand the existence of earnings management in fair value measurement,and provides a reference for the proper use of investment real estate fair value model,which helps report information users better understand the fair value of investment real estate.