fair market value

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Fair Market Value

A subjective estimate of what a willing buyer would pay a willing seller for a given asset, assuming both have a reasonable knowledge of the asset's worth. Fair market value is important in both law and accounting. In the former, it is often used in assessing damages as the result of a lawsuit. In the latter, determining the fair market value of an asset (e.g. after depreciation) is important to determining the amount of tax owed on it.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

fair market value

The price at which a buyer and a seller willingly consummate a trade.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Fair market value.

Fair market value is the price you would have to pay to buy a particular asset or service on the open market.

The concept of fair market value assumes that both buyer and seller are reasonably well informed of market conditions. It also assumes that neither is under undue pressure to buy or sell, and that neither intends to defraud the other.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

fair market value

The amount that a willing buyer would pay a willing seller for property after reasonable exposure to the marketplace.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Fair Market Value (FMV)

The amount at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
Companies routinely utilize interest rate swaps to reduce their exposure to changes in the fair value of assets and liabilities or cash flows due to fluctuations in interest rates.
Sarah is involved with CliftonLarsonAllen's in-house training program by providing training on the topics of investments, fair value measurements, split-interest agreements, contributions, and net assets.
From an IFRS perspective, IFRS 13 provides significant fair value guidance as, for the first time there is a precise definition of fair value and a single source of fair value measurement and disclosure requirements (U.S.
The critical debate on usefulness of fair value accounting has arisen in connection with the financial crunch and economic crisis in years 2007-2009.
Under this proposal, most financial instruments would be measured at fair value on the balance sheet.
It requires you to measure a biological asset at fair value less cost to sell, other than when its fair value cannot be measured reliably.
The increased importance of the concept of "fair value", as well as the ever higher importance of financial assets, have created the framework for developing a new value-based accounting model.
FASB has raised the bar for disclosure required when the fair value option is in play so that investors, analysts and other financial statement users will be able to clearly understand the extent to which the option is used and how changes in fair values are reflected in the financial statements.
Another area of discussion has been around how to calculate fair values and what the appropriate categorization is of the fair values calculated as level 1, 2 or 3 under the newly issued guidance.
FASB's fair value measurement standard is a good first step toward developing enhanced guidance for the estimation of fair values.
Archival research on the value- and risk-relevance of fair values provides only mixed support for these normative predictions.