1、公允价值应用过程中存在的问题及对策（Problems and Countermeasures in the application of fair value）Problems and Countermeasures in the application of fair value2010-12-9 11:17, Tang YulanAbstract this paper analyzes the use of fair value situation, pointed out that Chinas accounting standards system in theory to explo
2、re the use of fair value and the actual operation there are still many problems, and puts forward some countermeasures to further improve the application of fair value.Key words fair value; accounting standards; problems; CountermeasuresChinas new accounting standards (hereinafter referred to as the
3、 new guidelines) part of the use of fair value measurement attributes, but the fair value of the new guidelines in the application should be very cautious. Compared with the international financial reporting standards, Chinas new standards system in determining the application of fair value, taking
4、full account of Chinas national conditions, made a prudent improvement. The use of fair value must meet certain preconditions, that is, fair value should be reliably measured.Enterprise accounting standards - basic standards emphasize that enterprises should generally adopt “historical cost“, and on
5、ly when the amount of accounting elements can be obtained and reliably measured can the non historical cost measurement attribute be adopted.First, the current application of fair value in ChinaAt present, China mainly adopts the measurement attribute of fair value in financial instruments, investme
6、nt real estate, non controlled corporate mergers, debt restructuring and non monetary asset exchange. In addition. The use of conditions is strictly limited in the specific criteria for the use of fair value. At present, Chinas application of fair value is mainly reflected in the following aspects:(
7、1) the application of fair value in the investment real estate standards of our countryNew standards: enterprise shall, on the date of the balance sheet through the cost pattern of real estate investment in the subsequent measurement, there is strong evidence that the fair value of real estate inves
8、tment to a sustainable and reliable condition, can the subsequent measurement of the fair value model of real estate investment. This means that the Real Estate Company can choose the two modes, and the measurement model once determined, must not be arbitrarily changed. The fair value model has not
9、been adopted to switch from the fair value model to the cost model. From the original cost model to the fair value model, the difference between the fair value and the original book value adjusts the retained earnings. The new standard also stipulates that if the real estate investment by the fair v
10、alue measurement of the investment real estate, no depreciation or amortization should be based on the balance sheet date the fair value of real estate investment adjust the book value as the basis, the fair value and the original book value of the difference between profit or loss. The adoption of
11、new guidelines, will guide the market to pay more attention to the real value of the investment real estate property, and the revaluation of the net asset value per share valuation method has become one of the main standards of investment real estate enterprises evaluation.(two) the use of fair valu
12、e in the principles of debt restructuring and non monetary assets exchange1 debt restructuring criteriaIn order to prevent the fair value from being abused again and again to cause serious profit manipulation, the new principle of debt restructuring stipulates that fair value should be reliably meas
13、ured when introducing fair value“. Concurrent provision,Debt restructuring gains shall be credited to current profits and losses. That is to say, if the debtor can get all or part of the creditors immunity, the debt may be counted as current income and reflected in the income statement.2 non monetar
14、y assets exchange standardsThe new regulations, the exchange of non monetary assets at the same time to meet the following two conditions should be based on the fair value and relevant payable taxes as for the cost of the assets, the fair value and the carrying value of the asset balance in current
15、profit and loss: first, the exchange has commercial substance: second, the assets or the change of fair value the asset can be measured reliably. In accordance with the new guidelines, when the value of non monetary assets (inventory, fixed assets, etc.) at the end of historical cost and market valu
16、e (net realizable value) which is lower valuation. The market price is lower than the historical cost, impairment, book value reaching the fair value of the non monetary transactions, the fair value measurement method, will not produce trading revenue; and when the market price is higher than the hi
17、storical cost as the carrying handle, namely non monetary assets appreciation, non monetary transactions can produce a large number of income, so now the enterprise can through non monetary transaction to manually adjust profits.(three) the application of fair value in enterprise merger standardsAcc
18、ounting standards for enterprises with new were divided and belongs to a business combination under the same control, the merging party obtains in a business combination of assets and liabilities, shall be in accordance with the merger in the book value of the merged party, the merging party obtains
19、 the net book value of assets and the payment of the merger consideration (book value or the total par value of issued shares) the difference between, should adjust the capital reserve. If the capital surplus is not enough, the retained earnings shall be adjusted. The new accounting standards of thi
20、s rule, abandon the use of fair value, can avoid profit manipulation. The new accounting standards of business combination accounting according to the price of the book value of assets, starting from the actual situation of the development of market economy and capital market of our country, is the
21、prudent use of fair value, which is conducive to the standardization of enterprise earnings management behavior, improve the credibility of corporate profits.(four) the use of fair value in financial instrumentsAccording to the new guidelines, when the transaction financial assets are obtained, they
22、 shall be measured at the cost of the transaction, and the subsequent period shall be measured in accordance with the fair value. The changes in the fair value shall be included in the current profits and losses. This new approach will bring some of the profits of short-term investments to the surfa
23、ce of the listed companies, and new investment standards will revise the classification of investments. Among them, trading securities investment similar to the original short-term securities investment, ending at fair value (exchange market price) valuation. As for the corporate shares held by the
24、listed companies, the new accounting standards do not generally regard them as transactional financial assets, but are classified as available for sale financial assets. According to the new accounting standards, then the current among the two cities have a large number of corporate shares of listed
25、 companies, the future sale is reflected in the current performance, the current is reflected in the owners equity, which is the unit net assets will be increased sharply.Two, the domestic fair value theory and practice problemsAlthough fair value replaces historical cost, it has become an irreversi
26、ble trend of the times. However, there are still some problems in practical application,The following are the main points:(1) lack of perfect theoretical system guidance;Although there have been some theoretical research results about the fair value measurement property, a complete theoretical syste
27、m has not been formed. The study of fair value still needs to be deeply studied, which is manifested in the immature maturity of valuation technology. The practical world is at a loss as to the complexity of valuation techniques. In many areas, it is difficult to overcome the influence of human fact
28、ors in a short period of time, but also make it in a clear phase of the provisions. Application of fair value in accounting standards and how to coordinate the JAsB and FASB have different opinions on the fair value of the coordination scheme is not a better guarantee of the two major breakthrough i
29、n important position, these problems should be further explored.(two) the reliability of fair value is difficult to controlFair value is mainly recognized by the market, and if there is no other interest between the two trading entities in addition to the transaction, then their transaction price is
30、 considered fair. But in reality, there is a lack of fairness between enterprises and their related parties, and many listed companies even use related party transactions to whitewash statements and inflated accounting profits. Because the fair value is mainly market price, in the absence of market
31、price, it should be determined by the accounting entity itself, so human subjective factors will inevitably affect the fairness of the value. In practice, a few enterprises do not consider fair or not, and use fair value as a tool to achieve their goal. For example, through the impairment of assets
32、and the subsequent impairment back, and other means, so as to achieve the purpose of manipulating profits. Choose the fair value model is a non deterministic, variability and measurement concepts of fuzzy sets, as a means of accounting measurement, objectivity, uncertainty and can be compared with t
33、he historical cost measurement model of verification, although can provide more relevant information in the financial report, but in the reliability of the quality requirements but cannot guarantee can improve or not weaken.(three) fair value is not easy to obtain directlyAlthough the market economy
34、 in China has made great progress, but in many cases, fair value is still difficult to obtain. In this case, the new standards require the use of fair value measurement, and if there is no appropriate alternative, it will inevitably affect the reliability of accounting information. There are many ac
35、counting elements such as assets and liabilities are hard to find for observation of the transaction price in the market, the present value of the future cash flow at a certain discount rate now converted into cash value, often become the price estimation of the fair value of the most important tech
36、niques. But the future cash flow amount, time point and time value of money are uncertain, in the measurement of operation is often difficult, so the complexity of present value measurement becomes a difficult task for the implementation of the application of fair value measurement model.(four) the
37、volatility of financial reporting items may be increasedIn the model of fair value measurement, the change of economic environment and risk situation and the uncertainty of enterprises credit will lead to the fluctuation of enterprise financial statement items. Some people believe that if volatility
38、 exists, then the financial statements should reflect this volatility, so that users of the report can obtain more relevant financial information.However, changes in the gains and losses that reflect changes in external circumstances do not provide very relevant information and may even mislead fina
39、ncial statements users.(five) entanglement with the motivation of earnings management is the biggest obstacle to the application of fair valueEarnings management refers to the accounting choices made by enterprise managers within the limits permitted by accounting standards, in order to maximize the
40、ir utility and / or maximize their value. Earnings management may be in the short term, the enterprise management authorities even existing investors benefit, but if considering the long-term development of potential investors, the market environment and enterprises earnings management is obviously
41、the harm. The fair value itself is not the cause of earnings management, it provides a means for the earnings management, the use of the process of technology valuation of the fair value measurement is full of subjective judgments and estimates, as long as the input variables in the “little hands“,
42、the result of it may have great difference. In 2001, the reason for the urgent stop of fair value in China was due to the earnings management of a large number of companies through fair value, which damaged the interests of investors. From the point of view of standardizing fair value application, t
43、he methods of restraining earnings management include providing uniform standards and strengthening supervision.Three, improve the application of fair valueFrom our new accounting standards, we can see that the re application of fair value is a bright spot in the new guidelines. Compared with IAS, t
44、he accounting standards system of enterprises in our country takes more into account the actual situation of our country when we apply the fair value, and makes a careful improvement, and strictly standardizes the application conditions of fair value. From the point of view of development, it is an
45、inevitable trend to measure in accordance with international accounting practice.(1) to clarify the connotation of fair value;The unclear understanding of the connotation of fair value is a congenital defect affecting its application. Fair value is the first appeared as a supplement to the historica
46、l cost measurement model, the application can be expanded in the past 20 years, and gradually increased as compared with the historical cost model is another important accounting model. Fair value is a theoretical term coined by accounting scholars to meet the needs of accounting measurement, and ha
47、s no definite connotation in the early stage. Today, the indefinite content of the fair value will lead to misunderstanding of the understanding of fair value, and hinder the realization of the fair value measurement target. For a long time, the view of fair value as a set of multiple measurement at
48、tributes has been accepted by many scholars. This is the view that the fair value reflects both the historical cost, and reflects the current market value, net realizable value, the fair value of the connotation of the definition of the lack of a clear boundary, the accounting personnel in the measu
49、rement of assets and liabilities when the lack of measurement objective unity is congenital defects of the application of fair value.Therefore, it is the premise of fair value to make clear the connotation of fair value measurement and establish a unified target of fair value measurement. The standard maker should define the connotation of fair value in the standard by modifying the definition, which is the prerequisite for the effective application of fair value.(two) to grasp the absolute reliability requirements of fair value applicationsThe requirement of absolute reliability
