In view of analyzing the application of fair value in the accounting standards, such as the financial tools, investment property, non- monetary assets exchange, and debt reconstruction, the possible behaviors of earnings management are pointed out. It also puts forward measures to prevent the abuse of fair value for earnings management, such as: improving the recognition ability of the users' financial information; strengthening the internal and external monitoring of the fair value measurement further, introducing the asset assessment institution to determine the fair value of the assets, changing the concept of the income, as well as introducing the comprehensive income theory.