Primary navigation:

QFINANCE Quick Links
QFINANCE Reference

Home > QFINANCE Dictionary > Definition of fair value

Definition of

fair value


asset's or liability's worth in arm's length transaction the amount for which an asset or liability could be exchanged in an arm's length transaction between informed and willing parties, other than in a forced or liquidation sale.

Related definitions of "fair value"

Recommended Further Reading (Term count)
  • Option Pricing
    There are two sorts of options in stock market trading: call and put. Option pricing uses mathematical models to calculate the value of a stock option and how it changes in response to changing conditions.There are two key components to option pricing: the intrinsic value, which measures the amount by which an option is “in the money;” and the time value, which measures the amount paid for the time the option has before it expires.
  • Accounting for Business Combinations in Accordance with International Financial Reporting Standards (IFRS) Requirements
    by Shân Kennedy
    The accounting for business combinations under IFRS is governed by four key standards:IFRS 3, Business Combinations; IAS (International Accounting Standards) 27, Consolidated Financial Statements; IAS 36, Impairment of Assets; IAS 38, Intangible Assets.IFRS 3 sets out the requirements to be followed in accounting for a business combination. Its introduction in 2004 represented a substantial change from the standard it superseded, IAS 22. IFRS 3...
  • Classification and Treatment of Leases
    by Roger Lister
    Lease accounting is nearer than ever to its goal of reporting substance rather than form. International regulators and their national counterparts agree that right-to-use rather than legal title should determine the classification and treatment of leases. The choice is essentially between disclosing a lease as a financial instrument on the balance sheet or as an operating lease on the income statement.Financial reporting of leases is addressed...
  • Acquisition Accounting
    This checklist explores the principles of accounting for a business combination under the acquisition method of accounting.

Definitions of ’fair value’ and meaning of ’fair value’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’fair value’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top