Fair value, is the standard of value used in over forty Accounting Standards Codification (“ASC”) topics. Some of the more commonly encountered topics that rely upon fair value are:

  • ASC 350, Intangibles – Goodwill and Other
  • ASC 360, Property, Plant and Equipment
  • ASC 805, Business Combinations
  • ASC 815, Derivatives and Hedging
  • ASC 825, Financial Instruments[1]

Fair value is defined within ASC 820, Fair Value Measurements and Disclosures, as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”[2]


 Considerations

Market Participants
The Most Advantageous Market
Highest and Best Use
Fair Value Hierarchy
Appropriate Valuation Technique

More Information

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[1] ASC 718, Stock Compensation, does not rely upon the fair value standard found in ASC 820.

[2] ASC 820-10-35-2.