Research On The Measurement Mode Of Fair Value Of Investment Real Estate

In general,the real estate projects involved in the company's assets should be accounted as fixed assets or intangible assets such as land,and the fixed assets enterprises should be measured in cost mode according to common sense.However,with the development of society and the continuous strengthening of economic mobility,a relatively new real estate appeared in the market,that is,investment real estate.According to our conventional understanding,the fair value mostly appears in the financial assets with strong liquidity,and almost nothing is involved in the real estate module.However,the international application of fair value measurement in the investment real estate is becoming more and more common.In order to match the international accounting standards,our country issued the investment real estate standards in 2006,formally separating it from the fixed assets,making the investment real estate a non-financial asset that can be measured with fair value.The guidelines issued by China have specific provisions on the definition of investment real estate and the selection and application of measurement mode.However,since the promulgation in 2006,the application effect of fair value measurement of investment real estate in the domestic real estate market is not satisfactory,and there are also many difficulties in the actual operation.Therefore,in order to develop the fair value measurement of investment real estate in China,it is meaningful to explore this problem.In finishing on the basis of related literature at home and abroad,this paper for the investment real estate related concept,the concept of fair value and the article generalizes the related theory into use,through to the real estate enterprises(new hualian)case study to analyze the problems existing in the follow-up measurement by fair value of the investment real estate and put forward the solution.Firstly,the background and meaning of the investment real estate fair value measurement are introduced at the same time puts forward the research content and method,thenintroduces the status quo of the investment real estate industry,by collating new hualian calendar year annual report given by the analysis of the company financial situation changes before and after the change of measurement model and the situation of the fair value disclosure.Finally,through the analysis of the data of financial statements from the financial statements and financial indicators of the impact of two aspects of comparison.It is concluded that the three influences brought by the fair value measurement model reduce the asset-liability ratio,increase the return on equity and reduce the asset turnover rate.Through a series of analysis,the author finds out the problems in three aspects: the increase of financial risk,the increase of cost and the decrease of the quality of financial statement information.The existing problems are analyzed in detail and corresponding solutions are proposed.At the end of this paper,we conclude that the fair value measurement of investment real estate will make the company's profits unstable and operational risks increased.Therefore,in order to promote the fair value measurement more widely,more effective market transactions and more perfect real estate valuation system are needed as the backing,so that the fair value can give play to the advantages of timeliness,reliability and relevance.However,how to carry out effective promotion is still a problem worth investigating.