Fair Value Measurement Analysis in Inactive Market

With the 2008 financial crisis spreading, in the inactive market how to get reliable fair value accounting valuation became a letter to solve the problem. The fair value of the reliability estimate security mechanism, which can provide adequate resources to estimate the fair value ensure the reliability of the valuation parameters and the diversity of the information source, promote the fair value information within the company and between internal and external exchanges. First, This paper points out that in the inactive market cases fair value measurement should consider the factors, including the definition in the inactive market, fair value measurement goal remains the same in the inactive market, the hierarchy of the parameters for the fair value measurement,as well as the motives of management; Second, the paper puts forward the main improvement from the fair value appraisal technique, strengthen the internal control of the fair value estimates, play to the leading role of the government in the third party appraisal system, the disclosure of the fair value, estimation,and strengthen the securities market supervision and so on, which can construct the reliable and secure mechanism of he fair value measurement in the inactive market cases.