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FAIR VALUE - IMF

Statistics Directorate    
Definition:
The fair value of a financial asset or liability refers to the value that approximates the value that would arise from a market transaction between unrelated parties.

Context:
Fair values can be used in most situations in which market-price data are unavailable. Two general methods for establishing fair values involve use of either:

· Market prices of financial assets and liabilities that are market traded but otherwise similar to the non-traded financial assets and liabilities that are being fair valued; or

· Discounted present values of future cash flows from nontraded financial assets and liabilities.

Source Publication:
Monetary and Financial Statistics Manual, IMF, Washington, 2000, paras. 219-220.

Cross References:
Fair value - OECD

Hyperlink:
http://www.imf.org/external/pubs/ft/mfs/manual/index.htm

Version Indicator: IMF

Statistical Theme: Financial statistics

Created on Tuesday, September 25, 2001

Last updated on Monday, January 20, 2003