Fair Value in the Professional Valuation : Concepts and Models

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