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Value, Fair Value or Fair Market Value, Although These Terms Have Distinct Definitions in Different
Value, Fair Value or Fair Market Value, Although These Terms Have Distinct Definitions in Different
Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a
competitive auction setting. Market value is often used interchangeably with open market
value, fair value or fair market value, although these terms have distinct definitions in different
standards, and may differ in some circumstances.
fair value is a rational and unbiased estimate of the potential market price of a good, service, or
asset. It takes into account such objective factors as: acquisition/production/distribution costs,
replacement costs, or costs of close substitutes.
book value is the value of an asset according to its balance sheet account balance. For assets, the
value is based on the original cost of the asset less any depreciation, amortization or impairment
costs made against the asset. Traditionally, a company's book value is its total assets
minus intangible assets and liabilities. the value of a security or asset as entered in a company's
books.
Salvage value is the estimated resale value of an asset at the end of its useful life. Salvage
value is subtracted from the cost of a fixed asset to determine the amount of the asset cost that
will be depreciated. Thus,salvage value is used as a component of the depreciation
Scrap value is associated with the depreciation of assets used in a business. In this
situation, scrap value is defined as the expected or estimated value of the asset at the end of its
useful life.Scrap value is also referred to as an asset's salvage value or residualvalue.