Certified Valuation Analyst (CVA) Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which standard of value is required by SFAS 141 and 142?

Fair market value

Investment value

Fair value (financial reporting)

The standard of value required by SFAS 141 and 142 is fair value, specifically in the context of financial reporting. Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

This standard emphasizes the need for valuation to reflect the current market conditions and the perspective of a hypothetical market participant, making it critical for accurate financial reporting. SFAS 141 and 142 require companies to use fair value measurements for various assets and liabilities, including intangible assets and goodwill, thus ensuring transparency and consistency in financial statements.

Understanding this standard is vital for a Certified Valuation Analyst, as it influences how business valuations are approached in practice, especially for financial reporting and compliance purposes.

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