Editing Fair value (section)

{{Short description|Financial estimation of potential market price}}
{{Cleanup|date=October 2020|reason=The article has a terrible structure. Certain sections need to reorganized, merged, split or expanded.}}
{{use mdy dates|date=March 2024}}
{{Accounting |expanded=Concepts}}
In [[accounting]], '''fair value''' is a rational and unbiased [[Estimation|estimate]] of the potential [[market price]] of a good, service, or asset. The derivation takes into account such objective factors as the costs associated with production or replacement, market conditions and matters of [[supply and demand]].  Subjective factors may also be considered such as the risk characteristics, the cost of and return on capital, and individually perceived [[utility]].