【正文】 mation and evaluation. For example, the fair value not only for the initial measurement, are often used in subsequent measurement, and subsequent measurement are mostly in the absence of trade situation, through for a supply of sth. to reach consensus on the actual transaction price will be out of the question. There is also controversy most, one is fair value is what?, namely the definition of the fair value of the meaning not clear. This is also a question of the application of the fair value of the core problem, determine the meaning of fair value, fair value measurement to determine the direction and target. Our fair value describing ambiguous, connotation and extension of uncertainty, not specific, may lead to confusion in practice application. The fair value is what the understanding is different, the fair value measurement using assumptions, techniques and methods may be different, measuring the results of the difference can be large, measurement reliability will be reduced. the United States of America fair value definition development reference to China (1)orderly transaction. The United States of orderly transaction and the international accounting standards board ( IASB ) and our country Ministry of Finance stated even bargain concept has bigger difference. Orderly transaction emphasize in the market full disclosure and assets or liabilities owner39。s new accounting standards will be the fair value is defined as the transaction both sides of transaction is generated based on the amount, but not clearly expressed concern at the price. In some cases ( such as the related party transaction ) even if the transaction both sides, the price is also a lack of fairness, but also reduces the reliability of. China39。 and in some cases, pricing is not a trading conditions, such as asset revaluation, the reference market pricing the other participant in the transaction price. Therefore, the introduction of market participants concept makes the fair value has more reliability, but also deepen the concept of fair value.2 the application of the fair value of market conditions value market conditions The definition of fair value can be seen in fair value and market conditions of the relationship. IASB and fair value in China is defined as: the even bargain, the Party of be in voluntary basis for exchange of assets or liabilities repayment amount. The United States FASB accounting standards issued by the FASl57 fair value in the definition of fair value in the measurement for: with market traders in an orderly transaction, sale of assets or liabilities received transfer price. As can be seen from the definition, the first is the fair value of assets or liabilities in the transaction price, the transaction usually refers to the market, ., between two or more parties in the market of modity exchange. In the definition of fair value is similar to the market price, of course, the market price is not to leave the market access. Secondly, from China to the definition of fair value in, the transaction price is in even bargain, and familiar with the transaction both sides burst transaction prices, the United States of America 39。 market price is all market participants fully consideration of an asset or liability in the future cash flow and its uncertainty after the formation of the consensus, if there is no evidence to the contrary that the transaction is unfair or not voluntary, market transaction price for the asset or indebted evenhanded value。s system of accounting standards and international accounting standards in the process, China has the right to establish the fair value measurement and its specific target path south. Commercialize degree, fair value is the premise of even bargain. The high degree of marketization, market activity is as fair value acquisition provides a good foundation, but in the low degree of market situation, voluntary, mutual benefit, equivalence based even bargain still exists, resulting even bargain prices through multiple channels can get. Even in the absence of actual transactions occur, may also through imitate market transaction parameters judgements and estimates, or through the present value method and mathematical method to calculate the fair value. In fact, the socalled active market is only relative, not a country or area, all sorts of assets and liabilities are active in the market, no one country or area, all sorts of assets and liabilities are not there is an active market. Of course, the market is more active, the fair value of the more favorable. China39。s capital market after 10 years of development has accumulated a certain theoretical and practical basis. With international economic integration degree deepening, the international capital market between mutual infiltration and mutual restriction for our first implementation of the fair value in the financial market provides feasibility. More and more enterprises to participate in the financial markets for investment or hedging, resulting in a large number of related financial tools business. According to the transaction object, the financial market can be divided into the foreign exchange market, capital market and gold market, according to financial instruments duration, capital market can be divided into the money market and capital market. These markets on the current accounting theory and practice effects were the major foreign exchange market, monetary market and capital market. The development of the financial market for the use of fair value request also provided stage. From shortterm financial markets such as the bill, bond market and stock market, many enterprises have participated in. With China39。s assets and liabilities must adopt fair value measurement, just as fair value the attributes of the historical cost measurement attribute to the traditional accounting model deviation, can not be accepted accounting personnel, plus in practice, many of the assets and