09
Feb
KNOW THE DIFFERENCES BETWEEN FAIR MARKET VALUE AND FAIR VALUE
The terms “fair value” and “fair market value” are sometimes used interchangeably. To a business valuation professional, however, they have very different meanings. Adding to the confusion, “fair value” may be statutorily defined for shareholder litigation and divorce purposes — and that definition may vary depending on the case’s venue.
Moreover, fair value means something entirely different when it’s used for financial reporting purposes. (See “Fair value under GAAP.”) Ultimately, an...