Study On The Driver For The Transition Of Investment Property Measurement Mode In Huaye Estate And Its Financial Impact

With the deepening of China's economic reform and the rapid development of the market economy,in order to promote our country's accounting standards and international standards,the Ministry of Finance issued the "Accounting Standard for Business Enterprises No.3-Investment Real Estate" in February 2006,fundamentally improving Accounting information quality.Enterprises have a lot of motivation in changing the measurement model,the application of different measurement models is a very different financial impact,which is the starting point of this study.This article chooses Huaye Real Estate as a research case,analyzes the motivation of the change of econometric model and the impact on the financial status of the company after the change.First of all,from the theoretical level of investment real estate,two kinds of measurement modes are described.Subsequently,according to the status quo of the real estate investment real estate,analysis and summarizes the reasons for the change to the fair value measurement model:First,due to changes in the external market environment and the introduction of accounting policies and driven;second is derived from the internal strategic development Demand,financing needs and earnings management needs.Afterwards,through quantitative comparison and analysis,it is concluded that after the change of the fair value measurement mode,it has various impacts on the real estate finance of Huaye.For the income statement,it will bring changes in the changes of fair value to the profits and losses of the company,Depreciation and amortization expenses,which will have a positive impact on net profit;on the balance sheet,the book value of investment real estate,total assets and owner's equity will be greatly enhanced;in terms of major financial indicators,assets and liabilities will be effectively reduced,Improve earnings per share and return on net assets.After that,the article chooses two kinds of financial risk measurement models,namely Z-score model and F-score model to measure,and draws the conclusion that the financial risk index in fair value measurement mode is better.Finally,in view of Huaye Real Estate and government regulatory authorities,it proposes the pros and cons of changing to the fair value measurement mode and suggestions for improvement.This study provides an important reference for enterprises to change the mode of fair value measurement and provides a theoretical basis for the effective application of the fair value model.At the same time,it will help the government and regulatory authorities to improve accounting standards and regulatory measures to promote the fair value measurement model in our country better promotion and application.