The Application of Fair Value Measurement in Investment Real Estate

Abstract

Investment real estate has the characteristics of large investment scale and slow monetization speed. Many enterprises usually adopt a cost measurement model. With the establishment of China's market economy system, the difference between the construction price and sale price of investment real estate under the cost measurement model is relatively large, far greater than the fair value and sale price of investment real estate, which cannot adapt to the development of modern real estate industry. The use of fair value model has improved the timeliness and quality of accounting information, and objectively reflects the market value of real estate enterprises. This article focuses on fair value measurement and analyzes the advantages and disadvantages of this model in the application of investment real estate. At the same time, corresponding suggestions are proposed for the problems that arise during the use process.