|
As a measurement attribute, fair value has been widely used in the domestic and international accounting standards for its relevance of decision-making. Since 1997 in China, fair value has experienced 3 stages:use, abandon, and then use again. The widespread adoption of fair value in our current accounting standards is a bright spot in the reform of China’s accounting standards. However, the financial crisis erupted in 2007 made people begin to doubt the merits of fair value and its retention. In this context, FASB and IASB improved the fair value measurement standard, and gradually standardized the use of fair value. U.S. and international accounting standards both make fair value measurement as an independent standard, applying for all accounting elements. Since 2005, after six years of hard study, May 2011, IASB joint with FASB has finally released the fair value measurement criteria IFRS13, which showed their determination to promote and regulate fair value measurement. Unlike them, China’s current accounting standards just use fair value in certain specific accounting elements moderate and conditionally, and make only general requirements in its practice use, not giving detailed guidance on the determination of fair value. These problems have resulted in a big obstacle in the practical application of fair value, such as pro-cyclical effects, earnings manipulation, maneuverability and so on.In view of this, the research on how to use fair value is of great significance for the development and improvement of China’s accounting theory. This paper aims to analyze the application status and problems of fair value measurement in our current accounting standards, and learn from framework of IFRS13-Fair Value Measurement, and then provide guidance on the building of our independent fair value measurement standards system. Besides, in order to provide reference basis for better practice use of fair value, this paper will also give some feasible suggestions. This paper is divided into six sections, which can be summarized below.Part 1 describes the background of this paper, then reviews the research results of fair value at home and aboard, and then, proposes the main problems this paper wishes to solve.Part 2 describes the definition of fair value and the necessities of its application. First, introduce the concept and characteristics of fair value; then, analyze its theoretical basis, from 3 aspects:changes in accounting objectives increase of information quality requirements, and improvement of disclosure.Part 3 analyzes the application status of fair value in our country. First, introduce the application process of fair value; then, summarize its application in our current accounting standards and the problems in guidelines; finally, analyze the problems of fair value in practical application, including pro-cyclical effects, earnings manipulation, operational difficulties, and the high cost of implementation.Part 4 is mainly drawing on the content of IFRS13-Fair Value Measurement to provide guidance for our country to formulate separate fair value measurement standards and application guidelines. There are mainly 4 aspects of enlightenment: first, re-define the conception of fair value, and clear its measurable goals; second, discuss the valuation techniques in the process of using fair value, and describe the relevant valuation model; the third is division of the three-level of fair value; the fourth is the required contents related with fair value to disclose in financial reporting.Part V gives corresponding recommendations against the existing problems in the application of fair value. Recommendations can be divided into two parts:First, on institutional level, should improve the fair value measurement standards system as soon as possible; second, on implementation level, should strengthen the supporting construction relevant with fair value measurement, which includes regulating market environment, improving the quality of personnel, strengthening corporate governance, strengthen the cooperation with professional asset valuation institutions, and so on.Part VI is the prospects.
|