Fair Value vs. Fair Value?

There are two different types of fair value in the context of a business appraisal.

And no, they have nothing to do with each other.

Statutory Fair Value – Definitions of fair value vary by state, but generally, fair value is the appropriate standard of value for shareholder oppression disputes and in divorce in some states. Fair value generally considers the value of a business interest to be equal to the proportionate share of the enterprise with no diminution in value for lack of marketability or lack of control status.

Accounting Fair Value - is 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. Accounting Fair Value is defined by relevant accounting standards, and is the basis by which companies value their investments in their financials.

As a profession, can’t we come up with another name?

How about “Reasonable Value”?