Fair Value Principle
/ˈfɛər ˈvæljuː ˈprɪnsəpəl/
Definitions
- (n.) An accounting principle requiring assets and liabilities to be measured at their current market value rather than historical cost.
The fair value principle ensures that the financial statements reflect the actual market conditions at the reporting date.
Forms
- fair value principle
Related terms
See also
Commentary
The fair value principle often aligns with IFRS and GAAP requirements and is critical for transparent financial disclosures.
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