Fair Value

In: Business and Management

Submitted By estellemiao
Words 266
Pages 2
With the rapid development of economy in our country, the fair value measurement model will play a more and more important role in the accounting application. At the same time, along with a conceptual change in investment, the investment real estate also becomes a new economic growth point in China. Therefore, exploring the accounting application status of fair value in the investment real estate, finding existing problems and putting forward suggestions for improvement, both in academic and practice,is of great significance. This paper firstly compared the differences between the fair value model and the cost value model of investment real estate in our country, and then posed a contrast of investment real estate principle between our country and the international standard, the application status of investment real estate fair value measurement model in our country was also analyzed, driving to the conclusion that enterprises of our country seldom adopt the fair value pattern to measure their investment real estate, and the manner to determine the fair value was not unified. This paper also touched upon the empirical study of how the market (investors) respond to variation in the investment real estate fair value measurement, which found that changes in fair value recognized in profit or loss had a negative effect on share price, while net asset value per share played a opposite role; and investors’ react to changes in the fair value of the investment real estate conversion was not sensitive. This paper put forward to a series of proposals regarding improving the investment real estate fair value measurement model in our country…...

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