Abstract
Abstract Financial accounting, the use of historical cost of assets, is an important basic principle of historical cost, which is to become the dominant mode of accounting measurement. Background analyses, as well as the historical cost basis and fair value, result from the development of the theory of historical cost and fair value. Historical cost and fair value measurement model has its own advantages and problems. Based on this background, the paper applies B-theoretical numerical methods to differential equations pan function analysis for calculation of fair value accounting and conducts theoretical analysis of their stability and convergence. Finally, numerical examples with different methods of calculating an approximate solution are provided and a comparison of the various methods is done based on the results obtained. The results show fair value accounting better meets the needs of the target –decision-making availability, compared to historical cost or fair value, more in line with the requirements of Accounting Information Quality.
Highlights
The 2008 financial crisis in the fair value almost quit the stage of history, showing that fair value can be more reliable than historical cost financial information owing a series of empirical tests by international scholars on fair value
Driven by international accounting standards, in 2014, the Ministry of Finance issued document number CAS39, which contains the latest requirements for fair value measurement of property, in which the major response is to the international call
The results find that fair value accounting better meets the needs of the target – decision-making availability, compared to historical cost or fair value, more in line with the requirements of Accounting Information Quality [5]
Summary
The 2008 financial crisis in the fair value almost quit the stage of history, showing that fair value can be more reliable than historical cost financial information owing a series of empirical tests by international scholars on fair value. The performance of the main meaning and purpose of this thesis are as follows [2]: (1) a reasonable application of fair value measurement can be obtained through the hierarchical listing of the Company’s assets and liabilities more accurately, to provide more accurate data for business users of accounting information to help investors better understand the financial reports of listed companies, to guide investors to make the right investment decisions; (2) through the application of the stratification of the measured fair value of listed companies , we can more clearly understand the extent of the use of fair value measurement stratification in our country, to propose guidance to standardize the application of fair value measurement stratification, and on this basis, the financial report of listed companies, and promote the healthy development of China’s accounting theory [3]. There are many types of differential equations that cannot give analytical expressions for solutions They can only be calculated by numerical methods. The theoretical papers applied B-numerical methods to the differential equations on functional analysis calculating fair value accounting, as well as conducted theoretical analysis of stability and convergence. The results find that fair value accounting better meets the needs of the target – decision-making availability, compared to historical cost or fair value, more in line with the requirements of Accounting Information Quality [5]
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