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Definition

Fair market value is the price at which a brand would change hands between a willing buyer and a willing seller. The American Institute of CPAs (AICPA) defines the term as "the price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm's length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts. [1]
See FASB Accounting Standards Codification (AFS 820–Fair Value Measurement).

See also


References

  1. ^ AICPA. International Glossary of Business Valuation Terms.<http://www.aicpa.org/InterestAreas/ForensicAndValuation/Membership/DownloadableDocuments/Intl%20Glossary%20of%20BV%20Terms.pdf.> (cited 2 June 2015).

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