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The Influence of Fair Value on the Quality of Accounting Information-- From the Perspective of Accounting Measurement

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DOI: 10.25236/ssah.2018.027


Na Sun

Corresponding Author

Na Sun


For a long period of time, historical cost has been one of the main measurement attributes of financial accounting. But with the rapid development of market economy, the capital market is gradually improved, while the dispersion of equity is enhanced. The purpose of financial accounting changes from fiduciary duty to decision usefulness. Accounting information based on historical cost cannot meet the requirements of information users due to its weak relevance and timeliness. Meanwhile, fair value is more favored by information users since it is more closely related to decision-making, and can reflect the real value of assets and liabilities more objectively. In February 15, 2006, the Ministry of Finance issued the Accounting Standards for Business Enterprises, which further expands the application scope and strength of fair value, which marks the convergence of Chinese accounting standards and international accounting standards. However, the financial crisis caused by American subprime mortgage crisis brings the issue of fair value to focus of public discussion again, causing people to argue and doubt its usefulness. Then how to recognize and evaluate fair value? How can fair value influence the quality of accounting information? These are questions discussed in this paper.


Quality of Accounting Information, Fair Value, Relevance, Reliability.