The Choice Of Fair Value Measurement Model Of Z Company's Investment Real Estate

The choice of the two modes of investment real estate has always been controversial.With the development of economy,the disadvantages of the long-standing cost mode gradually show up.The feasibility of the fair value mode is gradually recognized.Scholars at home and abroad are increasingly exploring the measurement mode of investment real estate.Firstly,this paper introduces the basic theory of investment real estate,and analyzes the measurement model of investment real estate fundamentally,including the judgment conditions,initial measurement,category,transformation and disposal of investment real estate.Then it summarizes the advantages and disadvantages of the two models,and analyzes the application status of the two models.Then quoting the case of Z company about investment real estate,the paper introduces the time,reason and influence of Z company on the conversion of investment real estate measurement mode,analyzes the financial data of Z company after 8 years of transformation of measurement mode,analyzes the influence of this transformation on Z company by using a number of financial indicators,and obtains the advantages and disadvantages of Z company's measurement mode.Defects,and put forward suggestions for improvement of the company's defects.The uncertainties of the fair value model,the inaccuracy of the fair value valuation,the simplicity of the business model,the lack of standardization of information disclosure,the increase in the cost of financial personnel and the high cost of execution are all the problems that Z Company needs to pay attention to in its work.Within the company,we can strengthen the monitoring of changes in fair value,increase the way of fair value estimation,diversification and improve the governance structure to avoid.For the promotion of fair value model,the government and relevant departments should also make a contribution to establish the relevant data platform and feedback mechanism,give full play to the guiding role of the criteria in the work and evaluate the innovative way of valuation.At present,the coexistence of the two measurement modes is in line with China's national conditions,but the prosperity of fair value is an inevitable trend.When choosing the measurement mode of investment real estate,enterprises should fully consider the development of enterprises and the local economic environment,and can not unilaterally choose the measurement mode.