Research On The Application Of Fair Value Measurement Model Of Investment Real Estate

With the development of international accounting,a growing number of scholars attach great importance to the fair value measurement model,and our country's accounting should keep abreast with its development and keep up with the times.The market is constantly changing,and the present value of each part of assets and liabilities,compared with the historical cost,also has a little changes.If at this time it is still measured by the historical cost,it can not reflect the right value of assets and liabilities,and will cause serious distortion of accounting information.Therefore,the application of fair value measurement mode becomes very urgent and necessary.Firstly,this paper introduces the concept of investment real estate and fair value.Secondly,we regard the A-share listed companies which use the fair value model to measure the investment real estate from 2012 to 2016 in Shanghai and Shenzhen as sample companies,and use statistical analysis to research measurement model application on financial impact of the sample company from three aspects,including the enterprise capital structure,capital operation ability and profit ability.Thirdly adopt the method of empirical analysis in order to test the relationship between stock price and the company's financial data in the financial report,use the improved Ohlson model and price model to make regression analysis,and verify whether the fair value model can be used to provide the financial reporting users with relevant information.Finally,at the end of the article,a series of proposals to promote the application of fair value measurement model in investment real estate are put forward.After the empirical study,we found that the changes of the fair value and profits or losses of fair value of the investment real estate are positively correlated with the stock price.The result shows that the listed companies which use the fair value model to measure the investment real estate are able to provide more relevant accounting information.When it correctly reflects the market value of the investment real estate,it can also help investors make correct investment decisions.