On the Motivations of the Selection of Investment Property Fair Value Measurement Mode: Real Estate Listed Company from China’s A-share Market

Abstract

Taking industry classification made by China Regulatory Commission in 2012 as standards, real estate in classification and A-share companies with investment property items from 2013 to 2016 were recruited as study subjects. This paper studies the motivations of the selection of investment property fair value measurement mode. The results of this study show that companies with high percentage in investment property, high salary in management currency and in the places of estate market activity are more likely to adopt fair value measurement investment estate. It also shows that Accounting Standards for Business Enterprises NO. 39-Fair Value Measurement formulated by China in 2014 exerts a significant influence on the selection of investment property fair value measurement mode. It brings basis for investment property fair value confirmed by company and promotes operability of fair value application.