Reflections on Application of Fair Value in China's New Accounting Standards

The international accounting circle has attached great importance to fair value accounting for it provides not only the information of high relevance,but useful information for decision-making.The breakthrough has been reached in many aspects in China's New Accounting standards(2006).Among them the application of fair value measurement is the most noticeable aspect.Based on the theoretical analysis of fair value accounting practice,the paper makes an analysis of the economic environment of China.Meanwhile,some important characteristics such as prudence in the application of fair value have been taken on in China's New Accounting Standards.Finally,the paper draws a conclusion that how to guarantee the reliability of fair value is most important in the application of fair value.