Hengying Dong.  Application of B-theory for Numerical Method of Functional Differential Equations in the Analysis of Fair Value in Financial Accounting.  Dynamic Systems and Applications 29 (2020) No. 3, 719-729

https://doi.org/10.46719/dsa202029325

ABSTRACT.
Financial accounting, the use of historical cost of assets is an important basic principle of historical cost in order to become the dominant mode of accounting measurement mode. Background and analysis as well as the historical cost basis and fair value resulting from the development of the theory of historical cost and fair value Theory, historical cost and fair value measurement model has its own advantages and problems. Based on this background, the paper will B- theoretical numerical methods applied to differential equations pan function analysis and calculation of fair value accounting, and theoretical analysis of their stability and convergence. Finally, numerical examples were different the method of calculating an approximate solution, comparison of various methods from the results obtained. The results found that fair value accounting to better meet the needs of the target — decision – making availability; compared to historical cost or fair value more in line with the requirements of Accounting Information Quality.

Keywords. fair value; universal function; differential equation; B-theory; financial accounting.