Risk Analysis and Control in Fair Value Application Process: from the Perspective of Investors

From the perspective of investors,fair value application risk consists of non-application risk and ineffectiveness risk.To control ineffectiveness risk is the key to control fair value application risk.By combining the analysis of application process of fair value,this paper points out that the key link resulting in ineffectiveness risk is the measurement and disclosure of fair value information by the corporate management.This link consists of management intentional risk and management unintentional risk.Against these two risks,it is suggested to formulate high quality accounting and auditing standards associated with fair value,perfect corporate governance mechanisms,establish market information database,and improve the measurement and disclosure of fair value information and other aspects.