Research on Application Scope of Fair Value Measurement

Abstract

Based on the definition of assets, liabilities and fair value, this paper studies the theoretical application scope of fair value measurement. According to the present situation and existing problems of fair value application, this paper puts forward the "natural development view" for the future development of fair value measurement application. Fair value as a new measurement attribute, its basic research, application research and application in practice should have a continuous development and improvement process. As far as the current application is concerned, it is not the main measurement attribute in financial accounting. Can it become the main or even the unique measurement attribute in the future, coverting accounting completely from cost measurement to value measurement? How should we grasp the scope of application and steadily promote its practical application in this development process? This is very important for dealing with the relationship between the future and reality of fair value as well as controlling the development direction of fair value.