Application of Fair Value Measurement in China: Problem and Prospect

Abstract

Abstract. Fair Value has been taken very seriously around the world since its potential high relevance. China has widely introduced the measurement attributes to the new measurement methods. Large amount of enterprises went bankrupt or suffered capital decrease during financial crisis because of the utilization of Fair Value Measurement, which caused many negative discussions about Fair Value Measurement. To make the concept of Fair Value Measurement acceptable by more people and correctly practical in the background of increased extent of application of Fair Value Measurement, this research mainly described the problems related to the application of Fair Value Measurement in China and give an outlook about it.