Wednesday, July 18, 2018

Fair Value

Term Definition
Fair Value

An accounting and financial principle that refers to the value that assets and liabilities would have in a free market where both the buyer and the seller are free to participate in or decline the transaction. An assessment of the market price or market value of an asset or liability is made.  The "fair value" measurement standard is provided by the Financial Accounting Standards Board (FASB) Standard 167 (FAS 167) and GAAP.