Article 36As for the financial assets and financial liabilities, which, according to the present Accounting Standards, shall be measured at their fair values, but of which the prior fair values cannot be measured reliably, the enterprise shall measure them at their fair values when their fair values can be reliably measured, and the gap between the relevant carrying amount and the fair value shall be dealt with according to Article 38 of the present Accounting Standards herein.

Instead, it shall employ a more fair transaction price or the value appraisal result to determine the fair value.

Chapter VII Determination of the Fair Value

(1)The profits and losses, arising from the change in the fair value of the financial asset or financial liability which is measured at its fair value and of which the variation is recorded into the profits and losses of the current period, shall be recorded into the profits and losses of the current period

(24) As regards proceeds from disturbance of fair value, it is required to list the amount of such proceeds at current period and last period according to their sources.

Where the enterprise has adequate evidences to prove that the market quoted price of the latest transaction is not a fair value, it shall make appropriate adjustment to the market quoted price of the latest transaction so as to determine the fair value of the said financial asset or financial liability.

Present value

Present values

(1)For the financial liabilities measured at their fair values and of which the variation is recorded into the profits and losses of the current period, they shall be measured at their fair values, and none of the transaction expenses may be deducted, which may occur when the financial liabilities are settled in the future

The equity investment instruments, for which there is no quoted price in the active market and whose fair value cannot be reliably measured, shall not be designated as a financial asset which is measured at its fair value and of which the variation is recorded into the profits and losses of the current period.

(1)the financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period, including transactional financial assets and the financial assets which are measured at their fair values and of which the variation is included in the current profits and losses

(1)the financial liabilities which are measured at their fair values and of which the variation is included in the current profits and losses, including transactional financial liabilities and the designated financial liabilities which are measured at their fair values and of which the variation is included in the current profits and losses and

(3)financial assets measured at their fair values and of which the variation is recorded into the profits and losses of the current period.

(2)Where, within the range of variation of the said financial instrument, the various probabilities adopted to determine the estimate of the fair values thereof can be reasonably determined.

The fair value of a deposit at notice shall not be lower than the current value of the payable amount as of the first day it becomes drawable upon the request of the depositor for draw.

Article 52Where there is no active market for a financial instrument, the enterprise concerned shall adopt value appraisal techniques to determine its fair value.

(2)Where an enterprise holds the assets or liabilities that can be used to counteract the market risks, it may adopt the middle price of the market to determine the fair value of the positions that can counteract the risks of the market meanwhile, the offer or charge shall be the basis for determining the fair value of net exposure.

Article 30The financial assets and financial liabilities initially recognized by an enterprise shall be measured at their fair values.

In case the Company has intention to dispose fixed assets, it shall give a description on the name, book value and fair value of the fixed assets to be disposed, the estimated disposal expenses and the planned disposal time, etc.

(1)the designated commitments to grant loans made to the financial liabilities which are measured at their fair values, of which the variation is recorded into the profits and losses of the current period

PV is the present value in the sequence of payments.

The value appraisal techniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.

Article 51As for the financial assets or financial liabilities for which there is an active market, the quoted prices in the active market shall be used to determine the fair values thereof.

(4)The fair value of a combination of financial instruments shall be determined according to both the number of the single financial instruments within the combination and the unit quoted price of the market.

(1)Where there is a very small range for the variation of the reasonable fair value estimate of the said financial instrument

According to International Accounting Standard 18, contributions in kind should be valued at fair market value, and the valuation method should be disclosed.

The balance between the carrying amount of the said investment at the re classification day and the fair value shall be computed into the owner s equity, and when the said sellable financial asset is impaired or transferred out when it is terminated from recognizing, it shall be recorded into the profits and losses of the current period.

To determine the fair value of a financial asset, an enterprise shall choose those value appraisal techniques which are generally acknowledged by market participants and have been proved as reliable by past actual transaction prices of the market

(8)Where the fair value of the equity instrument investment drops significantly or not contemporarily

(13) As regards tradable financial liabilities, it is required to separately list the beginning of period and end of period fair value of offered tradable bonds, financial liabilities which are specified to be measured on fair value and whose fluctuations are included in the current profits and losses, derivative financial liabilities and other tradable financial liabilities.

(1)the designated non derivative financial assets which, at their initial recognition, are measured at their fair values and of which the variation is included in the current profits and losses

(2)the non derivative financial assets which are designated to be measured at their fair value when they are initially recognized and of which the variation is recorded into the profits and losses of the current period

Where there is any objective evidence proving that such financial asset has been impaired, an impairment provision shall be made.

The accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the sold financial asset after deducting the principals as taken back, the current fair value and the impairment related losses as was recorded into the profits and losses of the current period.

For the financial assets and liabilities measured at their fair values and of which the variation is recorded into the profits and losses of the current period, the transaction expenses thereof shall be directly recorded into the profits and losses of the current period

And when the said sellable financial asset is impaired or transferred out when it is terminated from recognition, it shall be recorded into the profits and losses of the current period.

For example, in some cases, financial reporting measurement requirements call for the valuation of certain assets on a fair value basis.

Article 38The profits and losses arising from the change in the fair value of a financial asset or financial liability shall be dealt with according to the following provisions, unless it is related to hedging

(a) Proceeds derived from offences covered by this Convention or property the value of which corresponds to that of such proceeds

Article 53As for the financial assets initially obtained or produced at source and the financial liabilities assumed, the fair value thereof shall be determined on the basis of the transaction price of the market.

(4) As regards tradable financial assets, it is required to separately list the beginning of period and end of period fair value of tradable bond investment, tradable equity instrument investment, financial assets which are specified to be measured on fair value and whose fluctuations are included in the current profits and losses, derivative financial assets and other tradable financial assets.

The fair value of a liability instrument shall be determined on the basis of the market situation of the day when it is acquired or issued and the current market situation, or the current market interest rates of other similar liability instruments (namely, having a similar remaining period, mode of cash flow, pricing currency, credit risks, basis of guarantee and interest rate, etc.).

The value of freedom. It's a value of community.

Article 29Where an enterprise buys back part of its financial liabilities, it shall distribute, on the repo day, the carrying amount of the whole financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose recognition has already been terminated.

If the credit risks of the debtor and the corresponding risk agios have undergone any change after the issuance of the liability instrument, the current prices or interest rates of similar liability instruments shall be referred to and the adjustment to the differences between different financial instruments shall be taken into consideration in the determination of the fair value of the liability instrument.