[umairk27]

I’m using Roger CPA Review and it seems that he uses the terms interchangeably. He has a whole section on Fair Value and I’m a little confused on how it differs from the term “Fair Market Value”. He also mentions the Market, Cost and Income approach. Is the market approach the same as measuring something at its fair market value? I’m confused…

FAR - 08/31/15 - 79 (4 week of studying)
REG - 10/10/15 - 80 (3 week of studying)
BEC - 11/30/15 - 83 (1 week of studying)
AUD - N/A

Roger Review Course + Ninja Audio Only.

[Dog pounder1977]

I work in public accounting at a regional CPA firm. There is no difference. When determining the value of an asset to list on the balance sheet of a client, we often switch from FV and FMV and MV. All terms are the same unless the item is not sold on the market then we may switch to FV.

One day I will face that exam.

[greg2015]

In GAAP, fair value is the preferred term and has replaced fair market value in most of the literature. Fair market value implies that there is a market for the item, but oftentimes there is no market, yet an estimate of fair value is still required.

AUD: 99
FAR: 95
BEC: 89
REG: 87

AICPA Ethics: 91

Licensed Illinois CPA

[Anonymous]

I saw a couple of ninja mcq's asking about the difference between FV and FMV, I am not completely sure but I think FV has something to do with willing parties, and FMV doesn't? It was in context of business valuation. Roger doesn't cover that so I can't check

[ScarletKnightCPA]

In colloquial use, people use it interchangeably.

It's my understanding, fair market value is fair value, but fair value is not always fair market value. This can occur when there are no markets available.

FAS157 have different tiers for determining fair value including tiers where there is a readily available market, tier for similar available markets, and tier for no readily available market.

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[Author]

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