Discussion on fair value in financial accounting
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The economic environment in the era of knowledge economy fluctuates sharply. The book value of accounting individual economic resources reflected by historical cost has deviated from its market value seriously, which has affected the correct decision-making of economic decision makers. One kind of measurement attribute which abandons the concept of cost measurement and can reflect the value of individual economic resources emerges as the times require, which is fair value. With the continuous development of economic globalization, financial accounting has made great progress. Fair value, as a means, has been continuously applied to financial accounting, which has played a positive role in promoting the development of financial accounting industry. As an important accounting method, fair value can be widely used in financial accounting to maximize the fairness of transactions, increase the security of corporate financial information and reduce the risks of corporate operations. Especially under the market economy system, the level of financial management of major enterprises is uneven, and the application of fair value in financial accounting is becoming more and more obvious.
Financial accounting, Fair value, Discuss