DEFINITION OF FAIR VALUE AND PROSPECTS OF ITS APPLICATION FOR ASSETS AND LIABILITY VALUATION IN RUSSIAN ACCOUNTING PRACTICE

The article discusses a method for assessing the assets of an organization at fair value. The concept of fair value is given. The prospects of its application for the valuation of assets and liabilities in Russian accounting practice are examined. The author proves the necessi-ty of taking a number of measures on the part of the state and firms to approve the fair value standard in the Russian accounting system. For some assets and liabilities, observable market transactions or market information may exist. For other assets and liabilities, observable market transactions or market information may not be available. However, the objective of measuring fair value in both cases is the same - to determine the price at which an orderly transaction would take place to sell an asset or transfer a liability between market participants at the measurement date under current market conditions.