An Approach for Convergence Regarding the Fair Value Concept versus Fair Market Value

The goal of a methodical business valuation process is to arrive at a clear and supportable estimate of “fair market value”. On the other hand, determining the “fair market value” of a business is important not only when the owner is putting up a “for sale” sign; it also can affect long-range planning. In the same time, the challenge in recent decades is related to the identification of methods and indicators able to measure the effects that fair value accounting and fair market value produce in the new economy. Because fair value is a very similar concept to fair market value occurred over time many divergences related to the use of these concepts. The present paper aims to capture the efforts made so far to assess and clarify need for convergence of these two revolutionary concepts in the context of new economy.