Understanding the “fair value” standard
Abstract: Different valuation assignments call for different standards of value. Minority shareholder dissension and oppression cases can be especially tricky. This article discusses some considerations that affect an appraiser’s approach to these cases — and, ultimately, the estimated value of minority interests. A sidebar explains that “fair value” can mean different things in accounting vs. legal contexts, and looks at the Financial Accounting Standards Board’s universal definition of fair value that supersedes any previous versions.