For the futures market, fair value is the equilibrium price of futures contracts. This is equivalent to the spot value of a specific period after including compound interest (and dividend loss, because the investment has futures contracts, not actual shares).

Fair value Fair value is sometimes called the definition of fair price:

1. The estimated value of all assets and liabilities of the acquired company merged into the consolidated financial statements of the two companies.

2. The concepts used in accounting and economics are unbiased and rational estimation of goods, services and assets, and usually consider the following factors: acquisition cost, production cost, distribution cost and replacement cost; Actual utility under specific social productivity; Supply and demand.

Second, fair value.

Fair value (fair value)

Also known as market price and fair price. The price determined by buyers and sellers who are familiar with the market situation under the conditions of fair trade and voluntariness, or the transaction price at which no related party can buy or sell an asset or pay off a liability under the conditions of fair trade. Under fair value measurement, assets and liabilities are measured according to the amount of assets exchange or debt settlement voluntarily conducted by both parties familiar with market conditions in fair trade. The purchasing enterprise needs to use fair value information in the consolidated business records. In practice, asset appraisal institutions usually evaluate the net assets of the acquired enterprises.

Three conditions determine the reasonable fair value.

(1) The information is public, and the information known by both parties to the transaction is symmetrical;

(2) Both parties are voluntary. If there is no evidence to the contrary that the transaction is unfair or involuntary, the market transaction price is the fair value of the asset or liability.

(3) Fair trading of assets or liabilities. Fair value can be the real market price based on actual transactions or the fictitious price based on hypothetical transactions.