Subject. This article discusses the issue of defining the Fair Value concept, its similarity and identification with the concept of Market Value. It examines the specifics of each particular value, defines the concept of Fair Value, and analyzes approaches (methods) of fair value valuation, clarifies existing problems of determining fair value for the purposes of IFRS application. Objectives. The article aims to define the notion of Fair Value and appropriate use in accounting, as well as explore approaches to assess fair value. Methods. For the study, we used a comparative analysis. Results. The article says of many inconsistencies in the valuation of fair value, starting with the lack of a clear definition of fair value in IFRS, which is actually identified with the concept of market value. It proposes a refined definition of fair value and identifies fundamental differences between fair and market values, which are based on the procedures used in their assessment. Conclusions. Fair and market values are two different types of valuation. Fair value can be the same as market value, but only if there is an active market available. There is no single concept of Fair Value presented in scientific and special literature. The same approaches are used in fair (IFRS) and market (valuation standards) assessments, but the methods described for each approach are not always the same.
Ключевые слова: International Financial Reporting Standards, Federal Accounting Standards, fair value
Procházka D. The Role of Fair Value Measurement in the Recent Financial Crunch. Prague Economic Papers, 2011, vol. 20, no. 1, pp. 71–88. URL: Link
Sokolov Ya.V. [The future of the International Financial Reporting Standards in Russia]. Finansy i biznes = Finance and Business, 2005, no. 1, pp. 69–83. URL: Link (In Russ.)
Shigufta Hena Uzma. Accounting of Intangible Assets under FVA. Research Journal of Finance and Accounting, 2012, vol. 3, no. 6, pp. 13–22. URL: Link
Elgabali W. The Possibility of Using Fair Value Accounting to Improve the Quality of Accounting Information in Egyptian Banks: An Applied Study. Administrative and Financial Sciences Review, 2020, vol. 4, no. 1, pp. 37–53. URL: Link
Druzhilovskaya T.Yu. [Issues of fair value application in connection with the innovation of its introduction into federal accounting standards]. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh = Accounting in Budgetary and Non-Profit Organizations, 2018, no. 1, pp. 2–10. URL: Link (In Russ.)
Tuyakova Z.S. [Fair value in the system of market assessment of accounting objects]. Vestnik Orenburgskogo gosudarstvennogo universiteta = Vestnik of Orenburg State University, 2006, no. 9, part 2, pp. 199–205. URL: Link (In Russ.)
Mishchikhina N.A., Romanchenko N.N. [Development of the concepts of market and fair value]. VUZ i real'nyi biznes, 2015, vol. 1, p. 214. (In Russ.)
Khoruzhii L.I., Vyruchaeva A.E. Bukhgalterskii uchet biologicheskikh aktivov i sel'skokhozyaistvennoi produktsii v usloviyakh perekhoda na mezhdunarodnye standarty finansovoi otchetnosti: monografiya [Accounting for biological assets and agricultural products in the transition to international financial reporting standards: a monograph]. Moscow, RTSAU Publ., 2012, 197 p.
Rozhnova O.V. [Topical issues of assessing the fair value of assets and liabilities]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2013, vol. 16, iss. 23, pp. 2–8. URL: Link (In Russ.)
Ponomarenko T.V., Sergeev I.B. [Valuation of mineral assets of a mining company on the basis of the option approach]. Zapiski Gornogo instituta = Journal of Mining Institute, 2011, vol. 191, pp. 164–175. URL: Link (In Russ.)
Ignatov E.V. [Assessing the fair value of licenses for the right to use subsurface resources]. Rossiiskii ekonomicheskii internet-zhurnal, 2012, no. 2, pp. 182–191. (In Russ.) URL: Link
Puchkina E.S., Rovnaya A.A. [The position of fair value in the concept of fundamental analysis]. Vestnik nauki, 2020, vol. 4, no. 10, pp. 50–58. (In Russ.) URL: Link
Shulenbaeva G.R., Dzhondel'baeva A.S. [The concept of fair value: Review of foreign studies]. Statistika, uchet i audit = Statistics, Account and Audit, 2020, no. 3, pp. 54–58. URL: Link (In Russ.)