Mainly in the following aspects:
1. Confirm the input value.
Under the historical cost measurement mode, the current accounting system stipulates that the recorded value of an asset is its historical cost, that is, the actual capital consumption when the asset is acquired, which cannot be changed once it is determined. This is not the case when measured at fair value, because fair value is based on the evaluation of market information. With the change of the market, the fair value is constantly changing. Accordingly, the recorded value of assets cannot be fixed and needs to be adjusted according to the change of fair value.
2. Determination of amortization object of assets.
Under the historical cost measurement mode, the amortization object of assets is undoubtedly its historical cost, or average amortization, or accelerated amortization.
3. The form of accounting reflection.
Under the historical cost measurement mode, only a single account is needed to reflect the actual cost of assets. When measured at fair value, because the amortization object of assets is still its actual cost, accounting should reflect both its fair value and its actual cost, so it is necessary to set up double-entry accounts.
Historical cost measurement refers to the amount of cash or cash equivalents paid when acquiring assets, or the fair value of the consideration paid when acquiring assets; Liabilities are measured according to the amount of money or assets actually received by them according to their current obligations, or the contract amount of their current obligations, or according to the repayment amount of liabilities in daily activities and the amount of cash or cash equivalents they need to pay.
Fair value measurement refers to the measurement of assets and liabilities according to the price that market participants can receive by selling assets or pay by transferring liabilities in an orderly transaction on the measurement date. Fair value measurement is a necessary means to maintain the order of property rights under the condition of market economy, and also an important way to improve the quality of accounting information, which represents the overall trend of accounting measurement system reform.
Fair value. Under fair value measurement, assets and liabilities are measured according to the price that market participants can receive from selling assets or pay for transferring liabilities in an orderly transaction on the measurement date.