Differences Between Fair Value VS Fair Market Value.

CFA Level II
#1

These two appear very similar. Has anyone developed an inutuitive way of differentiating between the two?

#2

What’s the difference?

#3

isn’t fair value, market value, fair market value just different names for the same thing???

Please don’t confuse me even more…lol

#4

FV is for Financial Reporting by GAAP/FASB.

FMV is per tax legistlation IRS etc.

While theoretically the definition of these are different (exit price/entry price potential vs hypothetical willing vs actual), I HIGHLY doubt the CFAI will test on this. They will test us on knowing that Investment Value is for a PARTICULAR buyer, who has a STRATEGY to increase the value.

#5

i look at is as. Fair Market Value = the value in the market. the market is made up of the buyers and sellers.

#6

I thought we are not sitting for CPA or ACCA…

#7

We are not, which is why I said the CFAI will test us on INVESTMENT VALUE VS THOSE OTHER 2