Last Updated: May 31st, 2022/Categories: Accounting/0.9 min read/

Fair Value	Market Value
Fair value refers to the actual worth of an asset, which is derived fundamentally and is not determined by the factors of any market forces.	Market value is solely determined by the factors of the demand and supply, and it is the value that is not determined by the fundamental of an asset.
Fair value is most commonly used in the market instead of any other valuation method. As in the fair value, there is an accuracy in the valuation of the asset and is a true measure of the technique.	Market value is not the most common valuation method.
An asset’s fair value often remains the same, and it does not fluctuate more frequently than the market value.	The supply and demand forces determine market value, which causes it to fluctuate.
Fair value accounting measure is globally accepted and is also accepted in the International Financial Reporting Standards (IFRS) and generally accepted accounting principles (GAAP)	The market value valuation method is the one that is not frequently used and is not globally acceptable.