The Application Of Fair Value Measurement In The Investment Real Estate Of China

China promulgated the new accounting standards in 2006,which stipulates that we can follow the fair value model for eligible investment real estate.The introduction of this provision will help enterprises to reflect the value of investment real estate more fairly,to provide more real and effective information for the users of financial reporting,it is also conducive to the integration of our country with the international economy.Since the change of the 2006 standards,the fair value measurement model in the field of investment real estate has already existed for a long time.But from the practical point of view,the investment real estate enterprises rarely use fair value model in the follow-up measurement,and most enterprises still use the cost model to measure them,owing to there are some shortcomings in the fair value model of investment real estate,which may also lead to some problems.In this context,the research on the current situation,motivation,impact and some possible problems of the fair value measurement model for investment real estate will be a good reference for other enterprises.This thesis first introduces the relevant literature about the fair value measurement model and its measurement and the investment real estate adopts the fair value measurement mode by domestic and foreign scholars.Secondly,it discusses the theories of fair value and investment real estate,and then statistics the application status of fair value measurement model of investment real estate.It also analyzes the motivation of adopting fair value measurement mode and the economic consequences.Taking Everjoy health group as an example,introducing the process of changing the follow-up measurement model of investment real estate,analyzes the reasons for using fair value measurement model,including the strategy of asset transformation,the demand for earnings management,the financing demand,the guarantee of the subsidiary;Analyzing the financial effects of the value measurement,including improve the structure of assets,increasing the net profit,increasing the income tax cost,improving the profitability;Analyzing the problems that should be paid attention,including the high cost of the fair value,the profit fluctuation,affecting policy of the dividend distribution and the high tax pressure.Finally,through the in-depth analysis of the Everjoy health group,putting forward the suggestions for improving the application of the fair value measurement in the investment real estate,including the suggestions to the standards setting institutions,the suggestions to the regulatory authorities and the suggestions for the enterprises.Through the analysis of the application of fair value measurement in the investment real estate and the deep analysis of the Everjoy health group,this thesis provides a reference for the enterprises that intend to adopt the fair value measurement model,and there is a positive significance to the promotion and application of the fair value measurement.