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TopConcept Of Fair Value
The most important definitions that dealt with the concept of fair value, we find: The Financial Accounting Standards Board definition: (FASB, 2006): “The price that can be obtained as a result of asset's selling or paid to settle a liability in a regular transaction between the participants at the measurement date”.
Definition of GAAP, The fair value of any asset is defined: the amount by which that asset can be sold or bought, in a real ongoing process between two parties who are willing, in case no liquidation (Hitchner, 2003).
Definition of International Accounting Standards Board (IASB): The amount that can be exchanged for an asset or settlement of an liabilities between parties who wish to be treated on condition that they are independent.” (Kieso & Weygandt, 2011).
Standard of fair value (IFRS 13) is the only standard that speaks in detail on fair value measurement. It was issued in May 2011 by the International Accounting Standards Board and it was implemented in 2013, and this standard was the result of a 6-year effort between the International Accounting Standards Board and the Financial Accounting Standards Board. This standard was preceded by long and difficult discussions, and its issuance had two reasons: The first reason: IASB's insistence on issuing a standard that defines fair value, the other reason relates to the coincidence of the dialogue on this standard with the global financial crisis and the attempt of relevant parties to solve it (Andrew Watchman, 2012).