Fair Value
Fair value is a market-based exit-price measurement for an asset or liability at a specified measurement date.
Historical cost, tax basis, fair value, revaluation, and other measurement attributes used for different reporting questions.
Measurement determines the monetary amount assigned to a recognized item. Fair Value applies a market-participant exit-price objective, while Historical Cost begins with transaction cost and later required adjustments.
Cost Basis often answers a tax or investment question rather than the financial-reporting carrying amount. Before comparing values, identify the framework, unit of account, measurement date, market or entity perspective, and location of changes in profit, OCI, or equity.
This section is educational and does not provide accounting, audit, tax, appraisal, legal, valuation, or investment advice.
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Fair value is a market-based exit-price measurement for an asset or liability at a specified measurement date.