There are various definitions of fair value that are used in different contexts, including financial reporting, tax planning, and financial analysis. Some examples of fair value definitions include:
International Valuation Standards (IVS): According to the IVS, fair value is defined as "the price at which an asset or liability could be exchanged in a transaction between market participants at the measurement date, under conditions that are assumed to be normal, that is, not affected by the sale."
Generally Accepted Accounting Principles (GAAP): According to GAAP, fair value is defined as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."
International Financial Reporting Standards (IFRS): According to IFRS, fair value is defined as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, other than in a forced sale or liquidation."
Financial Accounting Standards Board (FASB): According to the FASB, fair value is defined as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, after taking into account the seller's or buyer's condition and the risks inherent in the asset or liability."
Overall, these definitions of fair value are similar in that they all refer to the price that an asset or liability would fetch in the open market, under normal circumstances. However, there may be slight variations in the specific language used to define fair value, depending on the context in which it is used.