Define fair value accounting

The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies.
In the futures market, fair value is the equilibrium price for a futures contract.
This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time.

As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

FAIR VALUE MEANS ESTIMATED CURRENT MARKET VALUE

Fair value: The amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s-length transaction.
IFRS Practical implementation Guide and Workbook, Abbas Mirza and Graham Holt.

A valuation principle implemented by the FASB to standardize fair value calculations of certain financial instruments by examining historical costs.
Fair value accounting requires that the fair market value or an estimation of a market price be used as the present value of expected cash flows.
This principle has been around since the early1990s, but was amended in2006 to provide clarification on the standard.
It was met with opposition by many individuals in the financial industry.