ABSTRACT
Fair value refers to current values as the backbones of accounting measurements. Current value reference follows the efficient financial market hypothesis, which bases upon an equilibrium approach. The latter defines the efficient pricing under ideal conditions, establishing the benchmark for actual pricing. By construction, equilibrium abstracts away from realization and from the financial market investment process, which occur through periods. Equilibrium does assume the existence of efficient market prices, scoping out all the details concerning their formation through ignorance and hazard.
