Fair Value and Market Value


Fair Value is defined by the HKAS as “the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction” and should reflect the market conditions at the balance sheet. The Hong Kong Institute of Surveyors HKIS considered that this is the same as Market Value as defined in VS 3.1 of the The HKIS Valuation Standards on Properties First Edition 2005.


Market Value is intended to mean the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion.

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