Abstract
Subject. This article examines the evolution of the concept of Fair Value in accounting and its impact on the theory and practice of financial reporting. Objectives. The article aims to study the historical development of the concept of Fair Value in international and national accounting practices, and assess the impact of its application on the reliability and relevance of financial statements. Methods. For the study, I used the methods of theoretical analysis and synthesis, as well as comparative analysis. Results. The article finds that the transition from historical value to fair value is due to the need to provide more relevant, objective and significant information to users of financial statements. The evolution of this concept has led to changes in approaches to the valuation of assets and liabilities, improved transparency and comparability of reporting. The article reveals the problems of applying fair value associated with the subjectivity of assessments, the complexity of their application and the need to improve the skills of specialists. Conclusions. The article concludes that the essential role of fair value in modern accounting is recognized, and there is the need for its correct application. Improving the methodological and regulatory framework, harmonizing national standards with international standards will help improve the quality of financial reporting, meet the information needs of stakeholders, as well as improve the comparability of data at the international level.
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