Study On Investment Property Fair Value Measurement

In 2006,Accounting Standards for Enterprises No.3--Investment Real Estate issued by Ministry of Finance,allowing enterprises to adopt cost model or fair value model to do measurement for investment real state.In terms of the practical usage,listed companies using fair value model to do measurement less than 3%.Why the vast majority of enterprises select cost model to measure investment real estate? Some scholars put forward that an unclear fair value measurement make it difficult to conduct the subsequent fair value measurement.In 2014,Accounting Standards for Business Enterprises NO.39---Critiera of Fair Value issued by Ministry of Finance,thus increasingly improving the policy basis that enterprises' investment real estate use fair value model to do measurement.However,based on the latest statistics,there are still only 6.19% listed companies use fair value model to measure investment real estate.Whether the issue of CAS 39 will exert an impact on the selection of measurement model of investment real estate of enterprises? What are the specific drivers will influence enterprises to choose fair value measurement model? This study have collected relevant data and specific cases of fair value measurement model used by investment real estate of listed companies in recent years,so as to analyze the questions above by combining analysis of these data and cases.First of all,this study uses empirical analysis to explore the specific motivations of selection of investment real estate fair value measurement model.The results of empirical study have demonstrated that currency salary in management,activation of place that real estate market locates and holding percentage of investment real estate of companies have a significant impact on selection of fair value measurement model.Then,this study adopts case study method to analyze the selection of fair value measurement model of investment real estate of CAC group.The results have showed that case company can beautify corporate financial reporting by selecting fair value measurement model to a certain degree,thereby not only optimizing company's business structure,also improving company's performance level and financing capacity.This study further explores the influences of fair value measurement model of investment real estate caused by the issue of CAS 39 on the basis of studies above:(1)normalizing the disclosure of fair value measurement information;(2)lowering possibility of improving performance in management;(3)enhancing operability of self-assessment fair value;(4)increasing the comparability of accounting information between enterprises;meanwhile,this study have gave improvement suggestions on five aspects like valuation supervision,practical operation,personnel quality,economic environment and internal control optimization.