Applied Research On Fair Value Measurement Model Of Investment Real Estate

In the total assets of enterprises,real estate is an extremely important non-current assets,for the measurement of this part of assets,most enterprises used to choose the cost model.However,with the development of China's market economy system,real estate with investment attributes began to appear,and the traditional measurement model lost its applicability.It is generally believed that fair value measurement is required for liquid financial assets.At present,the application of this measurement model to investment real estate has been widely recognized worldwide.In 2006,our country promulgated new accounting standards,one of the fundamental purposes is to align with international practice.New accounting The criterion not only receives high attention,but also clarifies the concept and application condition of fair value measurement,and clearly points out that the same enterprise must adopt a measurement mode for investment real estate,and ensure the rationality of the measurement mode in the process of subsequent measurement.This is because different measurement models are highly likely to produce two distinct financial data.At the present stage,our country is in the key period of deepening the reform,if the listed enterprise wants to carry on the transformation development successfully,must first clear its assets total value.Therefore,it is necessary and important to study the application of fair value measurement in investment real estate.This paper first shows the background,significance,research ideas and basic framework of the subject research,introduces the domestic and foreign literature and historical materials related to the subject in detail,then discusses the relevant theories of fair value measurement of investment real estate,and then analyzes the main factors that affect the normal application of the measurement model,namely accounting standards,financing structure,accounting information quality,management preferences and earnings management needs.Then,taking Xincheng Holdings as a case,this paper expounds the present situation of the application of the fair value measurement model of the investment real estate of the enterprise,and analyzes the motivation of the enterprise to choose the fair value measurement model and the fair value measurement model to the fair value measurement model its impact.Finally,this paper draws the corresponding research conclusion and inspiration.This paper takes Xincheng Holdings Co.,Ltd as the research sample,through in-depth research and analysis found: using fair value measurement model,on the onehand,effectively improve the operating performance of Xincheng Holdings,investment real estate to promote the company's profit indicators play a great role in promoting.As the company continues to increase the proportion of self-sustaining property,fair value fluctuations in the company's annual profits continue to increase.On the other hand,it strengthens the financing ability of the company,compared with the historical cost,the fair value of the real estate is obviously on the high side at present,and the reasonable follow-up measurement mode is selected for the investment real estate,which is beneficial to the beautification of the financial statements and the increase of the total assets Plus,it is clear that it can have a positive impact on the various stakeholders,which in turn can broaden financing channels and encourage stock prices in capital markets.But at the same time,it also increases the cost of information disclosure of the company;fair value measurement leads to uncertainty in the subsequent value-added of Xincheng holding real estate;Xincheng holding has incomplete and inaccurate disclosure of fair value information.Based on the above research and analysis,this paper puts forward the following suggestions: first,Xincheng Holdings should accurately grasp the development of real estate.For the investment real estate,its price is easy to be restricted by the environment of the real estate industry,so compared with the traditional cost measurement model,the probability of fair value measurement model experiencing external risks increases significantly.Second,improve the fair value management system of investment real estate and its information disclosure system,whether listed companies or non-listed companies,as a part of the market economy,they all have certain social responsibility,all need to provide real accounting statements for investors,tax institutions,managers and other parties.Third,external regulation The department should give full play to its role of supervision and management,in order to ensure the scientific nature,rationality and legitimacy of the application of the measurement model,and require enterprises to improve the financial evaluation index.Fourth,enterprises should not only realize the significance of accurate accounting of investment real estate value,but also adjust and perfect the relevant fair value management system according to their own reality.