On the application of fair value in the real estate enterprises of China

China's Ministry of Finance issued new accounting principle in February 2006. One highlight of the new standard system is that it allows enterprises to appropriately use this measurement attribute -'fair value'. It has become a problem for China's real estate enterprises to 'appropriately' use instead of 'misusing' fair value so as to provide accounting information useful for users' decision-making in a better way. Commencing with an analysis of the definition of fair value, the paper makes systematic exposition to the specific application of fair value in recognition, measurement and reports of the real estate enterprises as well as the specific issues worth attention in use, then it puts forward the corresponding strategies and insights on how to safeguard 'fair' use of fair value.