Title: Fair value in the professional valuation: concept and models

Authors: Andrey I. Artemenkov; Suman Lodh; Monomita Nandy

Addresses: The International Valuation Centre, The State University of Management (GUU), 22D, Hazait St., Haifa, 3522357, Israel ' Middlesex University Business School, Middlesex University, The Burroughs, Hendon, London, NW4 4BT, UK ' Brunel Business School, Brunel University, Kingston Lane, Uxbridge, Middlesex UB8 3PH, UK

Abstract: The paper addresses value measurement bases used in professional valuation. We, specifically, consider semantic and methodological features of equitable/fair value as a sui generis basis of Professional valuation. As used in the field of professional valuation, equitable/fair value is the logically necessary basis for estimating values-in-exchange for illiquid assets traded on the markets where the operations of "the law of one price" are very weak. Its logical relevance is demonstrated with the aid of a proposed tool based on Venn-diagrammatic approach (VDA). Then we analyse equitable/fair value estimating techniques resulting from V. Galasyuk's and the transactional asset pricing approaches (TAPA). The contribution of the paper is in analysing the main aspects of existing equitable/fair value estimation theories in terms of where they fall in the normativist/positivist continuum of economic analysis. It is hoped this paper will help provide a new perspective enriching wider debates on fair value in the accounting measurements world.

Keywords: accounting measurements; equitable (fair) value; International Valuation Standards; IVS; Venn-diagrammatic approach to valuation-bases; European Valuation Standards; professional valuation; transactional asset pricing approach; TAPA; Galasyuk fair value theory.

DOI: 10.1504/IJCA.2018.098262

International Journal of Critical Accounting, 2018 Vol.10 No.6, pp.427 - 446

Received: 16 Apr 2018
Accepted: 12 Jun 2018
Published online: 07 Mar 2019 *

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