The financial turmoil that swept the world, from America, Europe to Asia, was all affected. Facts have proved that financial assets are the first to bear the brunt of the storm, and their market value has plummeted. Therefore, in response, governments of various countries have introduced some emergency plans to alleviate the sharp decline in book financial assets brought about by the crisis, and fair value accounting is being challenged. In China, the fair value measurement just using the new standards is facing an embarrassing situation of being at a loss. Whether fair value should continue to be used in China and how to use it have become a topic of general concern. This paper holds that the economic core of fair value accounting is science, which helps to meet the needs of investors' decision-making. Modern market economy still uses fair value accounting basis. Combined with the actual situation in China, this paper discusses and analyzes the application of fair value in China, and tries to put forward some suggestions on the application of fair value in China.

-All right.