Fair value
From ACT Wiki
1.
The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
2.
More specifically, the price at which an asset can be bought or sold in transparent markets, where contracting parties are informed and act in their best interest. It represents the theoretical equilibrium price of securities or derivatives on open markets, for example, both buyers and sellers do not perceive them as overpriced or under-priced.
3. Financial reporting.
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 valuation date.
Also known as Fair market value.
