Fair Value Accounting
/ˈfɛər ˈvælju ˌəˈkaʊntɪŋ/
Definitions
- (n.) An accounting method that values assets and liabilities at their current market price or an estimate of fair market value rather than historical cost.
Under fair value accounting, the company adjusted its asset values to reflect current market conditions.
Forms
- fair value accounting
Related terms
See also
Commentary
Fair value accounting is significant in financial law and regulation for its impact on transparency and asset/liability valuation; drafters should note its contrast with historical cost methods.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.