FAIR VALUE METHOD LIKE A FORM OF A MARKET VALUE IN INVESTMENT PROPERTIES ACCOUNTING

Liuba BRÎNZILA Academia de Studii Economice din Moldova

Аннотация

This article relates the issues of fair value as a form of market value for investment properties accounting. Especially it highlights the concept differentiation between fair value and market value. The concept of market value implies a price negotiated in an open and competitive market. Fair value method is a concept used in accounting for financial statements. If it will be possible to determine the market value, it will be the amount that will be recorded in the accounts. In this case, the fair value will identify with market value. The fair value of investment property shall be identified by the market value only when estimating are doing on active real estate markets. But if the markets are not active, the market value will no longer be a reference, so will be used the fair value method to assess the investment property. Keywords: investment property, fair value, market value, evaluation, accountancy, concept, real estate, financial reporting.