fair value

True market worth

Fair value is the price at which an asset would change hands between a willing buyer and seller, neither under pressure to complete the transaction.

The term dominates accounting and finance: The company marked its holdings to fair value.

Fair value attempts to reflect what something is actually worth in current market conditions, as opposed to historical cost or book value.

Related

intangible assets · equity · financial reporting · price · appraisal · estimate · acquisition · going concern · derivative · liquidation · accounting · auditor · worth · reasonable · market price · hedge · goodwill · GAAP

Categories
Opposites
valuation accuracy

fair valuemispricing

Incorrect cost assignment

cooked books · book value · nominal value · cost basis · face value

market alignment

fair valueacquisition cost

Total expense to acquire

replacement cost

valuation direction

fair valueovervaluation

Appraising too highly

undervaluation · overpriced · underpriced · premium · discount

Family

fair, value, unfair, fairness, fairly, valuable, valued, evaluate, values

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G