Considerations on Fair Value Positioning between Valuation and Accounting
Author:
Maria Mădălina NIŢĂ, Ph. D. Student
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DOI:
Keywords:
fair value, market value, valuation technique, observable input, unobservable input, liquid market
Abstract:
The main objective of the current article is the presentation of some issues related to the fair value measurement according to the International Financial Reporting Standards, International Valuation Standards and accounting Regulation conform to the European directives approved by the Order of the minister of public finance no. 3.055/2009. The fair value, as an accounting concept, and its estimation techniques, present a special importance for measuring the items from the financial statements, at national and international level. Also, the article presents some recent aspects provided in the Exposure Draft entitled ˝Fair value measurement˝, issued by the International Accounting Standards Board (IASB) in 2009.\r\nAt the same time, the present article approaches some comparative elements between fair value, as accounting notion, and market value used in valuations, the way how these two economic concepts interferes and the characteristics of the valuation techniques used for fair value measurement in the context of not existing any active markets. \r\n