Enterprise Accounting Standard number 39th-fair value measurement

Enterprise Accounting Standard number 39th-fair value measurement

Accounting [2014]6 No.

Chapter I. GENERAL PROVISIONS

In order to standardize the measurement and disclosure of fair value, the code is formulated according to the Enterprise Accounting standards-Basic principles.

The second fair value refers to the price that a market participant has to pay for the sale of an asset to receive or transfer a liability in an orderly transaction occurring on the day of measurement.

Article III these guidelines apply to other relevant accounting standards that require or allow fair value to be measured or disclosed, except in the cases set out in articles fourth and fifth of these guidelines.

Fourth the measurement and disclosure of the following shall apply to other relevant accounting standards:

(i) The measurement and disclosure of other measurement attributes similar to fair value, such as the net realizable value of the "Enterprise Accounting Standards 1th-Inventory" specification, the current values of the projected future cash flows for the specification of "Enterprise Accounting standards 8th-Asset impairment", respectively, apply "Enterprise Accounting standard 1th-Inventory" and "Enterprise Accounting standard 8th" --Impairment of assets.

(b) The measurement and disclosure related to the share payment business, applying the Enterprise Accounting standard number 11th-share payment.

(iii) The measurement and disclosure of leasing business, the application of "Enterprise Accounting standards 21st-Leasing".

Fifth the disclosure of the following shall apply to other relevant accounting standards:

(i) The disclosure of assets that determine the recoverable amount at fair value minus the disposal fee shall apply the Enterprise Accounting standard 8th-impairment of assets.

(b) The disclosure of the assets of the employee after-service benefit scheme measured at fair value shall be applied to the Enterprise Accounting standard 9th-staff remuneration.

(c) The disclosure of investment in the Enterprise Annuity Fund, which is measured at fair value, shall apply the Enterprise Accounting standard 10th-Enterprise Annuity fund.

Chapter II related assets or liabilities

Sixth an enterprise measures the relevant assets or liabilities at fair value, it shall consider the characteristics of the assets or liabilities.

The characteristics of a related asset or liability are the characteristics that a market participant takes into account when the asset or liability is priced on the day of measurement, including the asset status and location, the restrictions on the sale or use of the asset.

Seventh the relevant asset or liability measured at fair value may be a single asset or liability (such as a financial instrument, a non-financial asset, etc.) or a combination of assets, liabilities, or assets and liabilities (e.g., the asset group, "Business Accounting standard 8th-Asset impairment", "Business Accounting standard 20th"- Business merger, etc.). Whether the enterprise is a single or a combination of the relevant assets or liabilities for fair value measurement, depending on the assets or liabilities of the measurement unit.

A metering unit is the smallest unit in which a related asset or liability is measured in a separate or combined manner. The unit of measurement of the relevant assets or liabilities shall be specified by other relevant accounting standards which require or permit the measurement of fair value, except for the fair value measurement of financial assets and financial liabilities which may be offset by the market risk or credit risk as stipulated in chapter tenth of this code.

Chapter III Orderly Trading and market

Eighth an enterprise measures related assets or liabilities at fair value, it shall assume that the market participants sell assets or transfer liabilities on the day of measurement, and that they are the orderly transactions under the current market conditions.

An orderly transaction is a transaction in which the relevant assets or liabilities have the usual market activity for a period of time prior to measurement. Forced transactions such as liquidation do not belong to an orderly transaction.

Nineth an enterprise measures related assets or liabilities at fair value, it shall assume that the sale of assets or the orderly transaction of transfer liabilities is carried out in the main market of the relevant assets or liabilities. Where there is no major market, an enterprise should assume that the transaction is in the most favourable market for the underlying asset or liability.

The main market is the market with the largest volume of related assets or liabilities and the highest trading activity.

The most advantageous market is the market that can sell the relevant assets at the highest amount or transfer the relevant liabilities at the minimum amount after considering the transaction and transportation costs.

Transaction costs are those that occur in the main market (or the most advantageous market) of the underlying asset or liability, directly attributable to the sale of assets or to the transfer of liabilities. Transaction fees are costs that are incurred directly from the transaction, are necessary for trading, and do not sell assets or do not transfer liabilities.

Transport costs are the costs of moving an asset from its current location to the main market (or the most advantageous market).

Tenth an enterprise should take into account all reasonably available information when identifying the main market (or the most advantageous market), but it is not necessary to examine all markets.

Typically, a market where an enterprise normally sells assets or transfers liabilities can be seen as a major market (or the most advantageous market).

The 11th major market (or the most advantageous market) should be the trading market in which the enterprise can enter in the measurement day, but it does not require the enterprise to actually sell the assets or transfer liabilities in the market on the day of measurement.

The same assets or liabilities may have different major markets (or the most advantageous markets) for different companies because of the different markets that different enterprises can enter.

12th The Enterprise shall measure the fair value of the relevant assets or liabilities at the price of the main market. Where there is no major market, an enterprise shall measure the fair value of the underlying asset or liability at the most favourable market price.

An enterprise should not adjust the price due to transaction costs. Transaction costs are not characteristic of related assets or liabilities and are only relevant to a particular transaction. Transaction costs do not include shipping costs.

The location of the underlying asset is the characteristic of the asset, and the cost of transporting the asset from its current location to the main market (or the most advantageous market) should be adjusted to the price of the main market (or the most advantageous market) based on the transport costs of transferring the asset from its current location to the main market (or most advantageous market).

13th when the measurement day does not exist to provide an observable market for the sale of assets or the relevant price information of transfer liabilities, the enterprise shall, from the point of view of the market participants holding assets or taking up liabilities, assume that the date of measurement has been a transaction of sale of assets or transfer of liabilities, The fair value of the underlying asset or liability is measured on the basis of the price of the hypothetical transaction.

The fourth Chapter market participants

14th an enterprise measures the relevant assets or liabilities at fair value, it shall adopt the assumptions used by market participants to maximize their economic benefits when pricing the asset or liability.

A market participant is a buyer and seller who, in the main market (or most advantageous market) of the underlying asset or liability, has the following characteristics:

(a) Market participants should be independent of each other, there is no "enterprise accounting standards 36th-related party disclosure" as described in the related party relations;

(b) Market participants should be familiar with the situation and be able to have a reasonable understanding of the underlying assets or liabilities and transactions based on available information;

(iii) Market participants should be able and voluntarily to trade related assets or liabilities.

15th the enterprise in determining the market participants, should consider the relevant assets or liabilities measured, the assets or liabilities of the main market (or the most advantageous market) and in the market with enterprises to deal with factors such as market participants, the overall identification of market participants.

The fifth chapter fair value Initial Measurement

16th The enterprise shall determine whether the fair value of the initial confirmation is equal to the transaction price according to the nature of the transaction and the characteristics of the relevant assets or liabilities.

In a transaction in which an enterprise obtains an asset or assumes liability, the transaction price is the price (i.e. the entry price) received for the asset to be paid or borne by the liability. Fair value is the price (that is, the selling price) to be paid for the sale of the asset to which the liability is received or transferred. The fair value of the underlying asset or liability at the initial confirmation is usually equal to its trading price, but may not be equal in the following cases:

(a) The transaction occurs between the affiliated parties. However, the company has evidence that the related party transactions are carried out under market conditions except.

(b) The transaction is forced.

(iii) The unit of measurement represented by the transaction price is different from the unit of measurement established in accordance with seventh of these guidelines.

(iv) The trading market is not the main market (or the most advantageous market) of the underlying assets or liabilities.

17th if other relevant accounting standards require or permit an enterprise to make an initial measurement of the relevant assets or liabilities at fair value, and the transaction price is not equal to the fair value, the enterprise shall count the relevant gains or losses into the current profit and loss, except as otherwise provided in other relevant accounting standards.

The sixth Chapter valuation technology

18th An enterprise measures related assets or liabilities at fair value, it shall adopt valuation techniques that are applicable in the current circumstances and have sufficient available data and other information to support it. The purpose of an enterprise's use of valuation technology is to estimate the price at which a market participant sells an asset in an orderly transaction or transfers a liability under the current market conditions of the measurement day.

The valuation techniques used by enterprises to measure related assets or liabilities at fair value mainly include market law, income method and cost method. An enterprise should measure fair value using a method consistent with one or more of the valuation techniques. If enterprises use various valuation techniques to measure fair value, the rationality of each valuation result should be considered, and the amount of fair value can be represented as fair value in the current situation.

Market law is the technology used to estimate the price of the same or similar assets, liabilities or assets and liabilities combined with other relevant market transactions.

The income method is the valuation technique that converts the future amount into a single present value.

The cost method is a valuation technique that reflects the amount required to reset the capabilities of the underlying asset service (usually the current replacement cost).

19th the enterprise in the application of valuation technology, should give priority to the use of the relevant observable input value, only if the relevant observable input value can not be obtained or obtained is not feasible, it is possible to use the non-observable input value.

The input value refers to the assumptions that market participants use when pricing related assets or liabilities, including observable input values and non-observable input values.

The observable input value is the input value that can be obtained from the market data. The input value reflects the assumptions that market participants use when pricing related assets or liabilities.

Non-observable input values are input values that cannot be obtained from market data. The input value should be determined based on the best information available to the market participants as to the assumptions used when pricing the underlying assets or liabilities.

20th the enterprise takes the transaction price as the fair value at the initial confirmation, and uses the valuation technology which involves the non-observable input value in the fair value follow-up measurement, the valuation technique should be corrected in the valuation process so that the initial confirmation result determined by the valuation technique is equal to the transaction price.

Where an enterprise uses valuation techniques in the subsequent measurement of fair value, especially when it involves non-observable input values, it should ensure that the valuation technology reflects market data that can be observed on the day of measurement, such as the price of similar assets or liabilities.

21st the valuation techniques used in fair value measurement shall not be arbitrarily changed once determined, but the change valuation technology or its application can make the measurement results in the present case the same or more representative of the fair value of the case, including but not limited to the following circumstances:

(i) The emergence of new markets.

(ii) New information can be obtained.

(iii) The information previously used could no longer be obtained.

(iv) Improved valuation techniques.

(v) Market conditions have changed.

If the enterprise changes the valuation technology or its application, it shall be in accordance with "Enterprise accounting standard 28th-accounting policy, accounting estimates change and error correction" As the accounting estimates change, and in accordance with the disclosure requirements of this code to disclose the valuation technology and its application, and do not need to follow the enterprise accounting standards 28th- Accounting policies, changes in accounting estimates and corrections of errors are disclosed in the relevant accounting estimates.

22nd when an enterprise uses valuation techniques to measure fair value, it shall choose the input value consistent with the characteristics of the assets or liabilities considered by the market participants in the transaction of the relevant assets or liabilities, including the liquidity discount premium, the control premium or the minority shareholder's equity discount, etc. But does not include a discounted premium that is inconsistent with the unit of measurement set out in seventh of these guidelines.

An enterprise should not consider a discount or premium arising from its large holdings of related assets or liabilities. The discount or premium reflects the adjustment of the market participant's offer to the asset or liability when the market's normal daily volume is less than the amount of the underlying asset or liability that the enterprise sells or transfers in the current market.

23rd if there is a bid and asking price in relation to the relevant assets or liabilities measured at fair value, the enterprise shall determine the fair value of the asset or liability in the same way that it represents the fair value of the current situation between bid and ask. The enterprise can use the bid to measure the asset position and use the asking price to measure the liability position.

This guideline does not limit the measurement of related assets or liabilities by an enterprise using the intermediate or other pricing practices used by market participants in the practice between bids and asking prices.

The seventh chapter fair value level

24th The Enterprise shall divide the input values used in fair value measurement into three levels, first using the first level input values, followed by the second level input values, and finally using the third level input values.

The first level of input is an unadjusted quote on the active market for the same assets or liabilities that can be obtained on the day of measurement. An active market is a market in which the relative assets or liabilities are traded and the frequency of transactions is sufficient to continuously provide pricing information.

The second level input value is an input value that is directly or indirectly observable in relation to an asset or liability other than the first level of input value.

The third level input value is the non-observable input value of the associated asset or liability.

The level of the fair value measurement result belongs to the lowest level of the input value which is important to the fair value measurement. Enterprises should determine whether the input values used are important, based on the characteristics of the underlying assets or liabilities. The level of fair value measurement results depends on the input value of the valuation technology, not the valuation technique itself.

The first level of the 25th input value provides the most reliable evidence for fair value. In all cases, if an enterprise is able to obtain an offer in the active market of the same asset or liability, the offer shall be applied without adjustment to the fair value measurement of the asset or liability, except in the following cases:

(a) Enterprises hold a large number of similar but different assets or liabilities measured at fair value, which have active market quotations, but are difficult to obtain individual pricing information for each asset or liability on the day of measurement. In this case, the enterprise can adopt other valuation models that do not rely solely on quotes.

(b) Active market quotations fail to represent the fair value of the measurement day, such as the occurrence of significant events affecting fair value measurement that lead to an active market quote that does not represent the fair value of the measurement day.

(c) The circumstances referred to in rule 34th (ii) of the present guidelines.

If an enterprise adjusts the price of the same asset or liability in an active market due to the above situation, the fair value measurement result should be divided into a lower level.

26th enterprises in the use of the second level input value of the relevant assets or liabilities for the fair value measurement, should be based on the characteristics of the asset or liability, the second level of input value adjustment. These features include the status or location of the asset, the degree of relevance of the input value to a similar asset or liability (including the factors specified in 34th (ii) of this guideline), the volume and activity of the market where the input value can be observed.

For related assets or liabilities with specific deadlines such as the contract term, the second level input value should be observable for almost the entire duration.

The second level of input values includes:

(i) Quotations of similar assets or liabilities in the active market;

(ii) an offer for the same or similar assets or liabilities in an inactive market;

(iii) Other observable input values other than quotations, including the observable interest rate and yield curve, implied volatility and credit benefits during the normal tick interval;

(iv) Input values for market validation, etc. Market-validated input values are those obtained through correlation analysis or other means that are mainly derived from observable market data or validated by observable market data.

The enterprise uses the important non-observable input value to adjust the second level input value, and the adjustment is important to the fair value measurement, and the fair value measurement result should be divided into the third level.

27th an enterprise can use the third level input value only if the relevant assets or liabilities do not have a market activity or if the market activity seldom leads to the relevant observable input value cannot be obtained or made impractical. Non-observable input values should reflect the assumptions that market participants use when pricing related assets or liabilities, including assumptions about risks, such as the inherent risks of specific valuation techniques and the inherent risks of valuation technology input values.

28th. In determining the non-observable input value, the enterprise shall use the best information reasonably available under the current circumstances, including all market participant assumptions that may reasonably be obtained.

Enterprises can use internal data as non-observable input values, but enterprises should adjust their internal data if there is evidence that other market participants will use other data that is different from the enterprise's internal data, or if the enterprise's internal data is enterprise-specific and other market participants do not have the relevant characteristics of the enterprise.

Chapter eighth fair value measurement of non-financial assets

29th an enterprise measures non-financial assets at fair value, consideration should be given to the ability of market participants to use the asset for the best use to generate economic benefits, or to sell the asset to other market participants who can use it for the best use to generate economic benefits.

Best use refers to the use of a non-financial asset when a market participant achieves the maximum value of a non-financial asset or a portfolio of assets and liabilities to which it belongs.

30th an enterprise determines the best use of non-financial assets, it shall consider such factors as whether the law is permissible, whether it is possible in kind and financially feasible.

(a) If the business determines whether the use of non-financial assets is legally permissible, the legal restrictions on the use of assets considered by market participants in the pricing of the asset should be considered.

(b) The enterprise determines whether the use of non-financial assets is possible in kind, taking into account the physical characteristics of the assets considered by market participants when pricing the asset.

(c) In determining the financial viability of the use of non-financial assets, the enterprise shall consider whether the use of the asset can generate sufficient income or cash flow if it is legally permissible and in kind, so as to compensate for the cost incurred in making the asset available for that purpose, the return on investment required by the market participants will still be met.

31st The enterprise should determine the best use of non-financial assets from the perspective of market participants.

Typically, an enterprise's current use of non-financial assets can be considered the best use, unless market factors or other factors indicate that market participants can maximize their value by using the asset for other purposes.

32nd an enterprise measures non-financial assets at fair value, the following valuation premises shall be determined on the basis of best use:

(a) Where a market participant uses a non-financial asset solely to produce the maximum value, the fair value of the non-financial asset shall be the current transaction price of the market participant who is also using the asset separately.

(b) Where a market participant uses a non-financial asset in combination with other assets (or a combination of other assets or liabilities) to produce the maximum value, the fair value of the non-financial asset shall be the current transaction price of the market participant who sells the asset in the same manner, And the market participants can acquire other assets and liabilities in the portfolio. Among them, liabilities include liabilities incurred by enterprises to raise working capital, but not liabilities arising from raising funds for assets outside the portfolio. The best-use assumptions should be consistently applied to all assets associated with the best use in the portfolio.

The enterprise shall determine from the perspective of the market participants whether the best use of the asset is to be used alone, in combination with other assets, or in combination with other assets and liabilities, but when measuring the fair value of a non-financial asset, it shall be assumed to be sold in accordance with the unit of measurement set out in seventh of these guidelines.

Nineth. Fair value measurement of liabilities and enterprises ' own equity tools

33rd an enterprise measures its liabilities at fair value, it shall assume that the liability is transferred to other market participants on the day of measurement, and that the liabilities continue to exist after the transfer, and that the obligations are fulfilled by market participants as the assignee.

If an enterprise measures its own rights and interests at fair value, it shall assume that the instrument of self-interest is transferred to other market participants on the day of measurement, and that the tool of its own rights and interests will continue to exist after the transfer, and that the market participant who is the assignee shall acquire the rights and obligations in relation to the tool.

34th the enterprises to measure liabilities or their own rights and interests by fair value, the following principles shall be followed:

(a) in the presence of the same or similar liability or the enterprise's own equity instrument to observe the market offer, the fair value of the liability or the enterprise's own equity instrument shall be determined on the basis of that offer.

(b) Where there is no identical or similar liability or an enterprise's own equity instrument to observe the market offer, but the other party holds it as an asset, the enterprise shall, on the date of measurement, determine the fair value of the liability or its own equity instrument on the basis of the fair value of the asset at the point of view of the market participant holding the asset.

When certain characteristics of the asset do not apply to the measure of liability or the enterprise's own equity instrument, the enterprise shall adjust according to the fair value of the asset and determine the fair value of the liability or the enterprise's own equity instrument with the adjusted value. These characteristics include restrictions on the sale of assets, assets with the measured liabilities or the enterprise's own equity instruments similar but not the same, the unit of measurement of assets and liabilities or enterprises own equity instruments are not exactly the same measurement unit.

(iii) In the absence of the same or similar liability or the enterprise's own equity instrument to observe the market offer and the other party does not hold it as an asset, the enterprise shall use valuation techniques to determine the fair value of the liability or the enterprise's own equity instrument from the point of view of the market participants who assume the liability or the issuance of equity instruments.

35th an enterprise measures its liabilities at fair value, it shall consider the risk of non-performance and assume that the risk of non-performance will remain unchanged before and after the transfer of liabilities.

Non-performance risk refers to the risk of non-performance of the enterprise, including but not limited to the enterprise's own credit risk.

36th an enterprise measures liabilities or its own rights and interests instruments at fair value, and the liability or its own rights and interests tool has a limiting transfer factor, if this factor has been taken into account in the input value of fair value measurement, the enterprise should not set the relevant input values separately, nor should the other input values be adjusted.

37th an enterprise to measure a demand deposit at a fair value, such as a financial liability which can be demanded to repay the characteristics at any time, the fair value of the financial liability shall not be less than the amount payable at any time when the creditor is required to repay, that is, the present value from the first day on which the creditor may claim reimbursement.

Tenth. Fair value measurement of financial assets and financial liabilities that can be offset by market risk or credit risk

38th an enterprise manages financial assets and financial liabilities on the basis of the net exposure of market risk and credit risk, it can measure the fair value of the combination of financial assets and financial liabilities on the basis of the price of the net long (i.e. assets) or transfer headroom (i.e. liabilities) of the market participants in an orderly transaction under the current market conditions.

Financial assets or financial liabilities that can be offset by market risk or credit risk shall be financial assets and financial liabilities as regulated by the Enterprise Accounting standard 22nd-Financial instruments recognition and measurement, and also include non-compliance with financial assets or financial liabilities, but in accordance with the Enterprise Accounting standard 22nd-Financial instruments validation and measurement Other contracts for the accounting process.

Other relevant accounting standards shall apply to the presentation of financial statements relating to financial assets and financial liabilities that may be offset by market risk or credit risk.

39th an enterprise shall, in accordance with the provisions of article 38th, measure the fair value of a combination of financial assets and financial liabilities, meet the following conditions:

(i) The official written document of the enterprise risk management or investment strategy has stated that the company manages the combination of financial assets and financial liabilities based on a specific market risk or a net exposure to a particular counterparty's credit risk;

(ii) the information on the portfolio of financial assets and financial liabilities is reported to key managers of the enterprise on the basis of a specific market risk or a net exposure to a particular counterparty's credit risk;

(c) The financial assets and financial liabilities of an enterprise in a fair value combination on each balance sheet date.

40th An enterprise shall measure the fair value of a combination of financial assets and financial liabilities in accordance with article 38th of this guideline, the specific market risks and the duration of the financial assets and liabilities should essentially be the same.

Where an enterprise measures the fair value of a combination of financial assets and financial liabilities in accordance with 38th of these guidelines, if the market participant will consider all existing arrangements that would reduce the credit exposure in the event of default, An enterprise should consider the impact of the net exposure of a particular opponent's credit risk or the impact of a particular opponent's net exposure to an enterprise's credit risk, and anticipate the possibility of market participants enforcing these arrangements according to law.

41st the enterprise adopts the provisions of this guideline 38th, the relevant accounting policies shall be determined in accordance with the provisions of "Enterprise accounting standard 28th-accounting policy, accounting estimate change and error correction", and shall not be arbitrarily changed once determined.

11th Chapter Fair Value Disclosure

42nd the enterprise shall properly group the assets or liabilities according to the nature, characteristics, risks and fair value measurement of the assets or liabilities, and disclose the relevant information of fair value measurement in accordance with the group.

In order to determine the assets and liabilities of the group, enterprises should generally be the balance sheet presentation of the project further decomposition. The enterprise shall disclose the adjustment information between the various groups and the reporting items.

Other relevant accounting standards expressly stipulate that the relevant assets or liabilities group and its sub-principles comply with the provisions of this article, the enterprise may directly use the group to provide relevant information.

43rd the enterprise should distinguish the continuous fair value measurement and the non-sustainable fair value measurement.

Continuous fair value measurement refers to other relevant accounting standards that require or allow an enterprise to continue to measure at fair value on each balance sheet day.

Non-sustainable fair value measurement refers to other relevant accounting standards that require or allow an enterprise to be measured at fair value in the balance sheet under certain circumstances.

44th on each balance sheet date after the initial confirmation of the relevant assets or liabilities, the enterprise shall at least disclose in the notes the following information for each group of assets and liabilities that are continuously measured at fair value:

(i) Other relevant accounting standards require or allow an enterprise to continue to measure at fair value on the balance sheet date of the project and amount.

(ii) level of fair value measurement.

(iii) The amount and reason for conversion between levels and the policy of determining the timing of conversion between levels. Each level of transfer and transfer should be disclosed separately.

(iv) for the second level of fair value measurement, the enterprise shall disclose the valuation techniques used and descriptive information of the input values. When the valuation technology is changed, the enterprise should also disclose the change and the reason for the change.

(v) for the third level of fair value measurement, companies should disclose descriptive information about the valuation techniques, input values, and valuation processes used. When the valuation technology is changed, the enterprise should also disclose the change and the reason for the change. The enterprise shall disclose the quantitative information of the important and reasonably acquired non-observable input values used in the fair value measurement.

(vi) For the third level of fair value measurement, the enterprise shall disclose the adjustment information between the opening balance and the ending balance, including the amount of the realized gains or losses which are accounted for in the current period profit and loss, as well as the profit and loss items when confirming these gains or losses, and the total unrealized gains or losses accrued in the current period, and the profit and loss items that are recognized when these unrealized gains or losses (such as the fair value of the relevant assets or liabilities, profit and loss, etc.), the total profits or losses in the current period, as well as other comprehensive income items to confirm such gains or losses, respectively, to disclose the purchase, sale, distribution and settlement of the relevant assets or liabilities.

(vii) For the third level of fair value measurement, when changing the amount of non-observable input value may lead to a significant change in fair value, enterprises should disclose descriptive information about the sensitivity analysis.

These input values are related to the other non-observable input values that are used, and the enterprise should describe the correlation and its effects, where non-observable input values include at least the non-observable input values required for disclosure in this article (v).

In the case of financial assets and financial liabilities, if one or more non-observable input values are changed to reflect reasonable and possible assumptions, the enterprise shall also disclose the fact, the amount of the impact of the change and the method of calculation.

(eight) when the best use of non-financial assets differs from its current use, the enterprise shall disclose this fact and its reasons.

45th in the balance sheet after the initial confirmation of the relevant assets or liabilities, the enterprise shall, at a minimum, disclose in the notes the following information for each group of assets and liabilities that are not continuously measured at fair value:

(i) Other relevant accounting standards require or allow an enterprise to be measured at fair value in a particular case, and for the reason that it is measured at fair value.

(ii) level of fair value measurement.

(c) For the second level of fair value measurement, the enterprise shall disclose the valuation techniques used and descriptive information of the input values. When the valuation technology is changed, the enterprise should also disclose the change and the reason for the change.

(iv) for fair value measurement at the third level, companies should disclose descriptive information about the valuation techniques, input values and valuation processes used, and when the valuation technology is changed, the enterprise should also disclose the change and the reason for the change. Enterprises should disclose the quantitative information of important non-observable input values used in fair value measurement.

(v) When the best use of non-financial assets differs from its current use, the enterprise shall disclose this fact and its reasons.

46th the relevant accounting policies of enterprises to adjust the level of the measurement of fair value should be consistent with each accounting period and be disclosed in accordance with the provisions of article 44th (iii) of this guideline. The relevant accounting policies should be applied uniformly to the level of fair value measurement and to the level of the fair value of transfer at the point of adjustment of the fair value measurement level of enterprises.

47th the enterprise adopts the accounting policy stipulated in article 38th of this guideline, the fact shall be disclosed.

48th for each group of assets and liabilities not measured at fair value in the balance sheet but disclosed at fair value, the enterprise shall disclose the information in accordance with these guidelines 44th (ii), (iv), (v) and (eight), However, it is not necessary to disclose the quantitative information of the valuation process of the third level fair value measurement and the important non-observable input values in accordance with 44th (v) of these guidelines.

49th for a liability which is measured at fair value and is accompanied by an indivisible third-party credit enhancement at the time of issue, the issuer shall disclose this fact and indicate whether the credit increase has been reflected in the fair value measurement of the liability.

50th the enterprise shall disclose the quantified information required by these guidelines in tabular form, unless otherwise appropriate.

12th Chapter Cohesion Provisions

51st the fair value measurement before the date of the implementation of this code is inconsistent with the requirements of this code, the enterprise does not make retroactive adjustment.

52nd the information disclosed in the financial statements is inconsistent with the requirements of the code before the date of implementation, the enterprise does not need to adjust it in accordance with the provisions of these guidelines.

The 13th chapter of the annex

53rd This code shall be implemented from July 1, 2014 onwards.

Enterprise Accounting Standard number 39th-fair value measurement