Importance Whereas Russia has adopted International Financial Reporting Standards, accountants deal with a new type of market value, i.e. fair value, which many scholars equate with the current market value. However, these concepts are not identical and equivalent. The article investigates these controversial issues. Objectives The main objective of the article is to explore the theory and the existing practice of using the current market value in measuring assets of profit-making companies. In this respect, the research addresses the following issues: to identify the priority valuation method existing in the Russian accounting practice, and situations when the current market value should be used; propose an algorithm for selecting a valuation methods using the market value; provide some recommendations for assuring the market value of assets for accounting and taxation purposes. Methods The research relies upon such empirical methods of research as observation, description, comparison, surveys, and general logic methods and techniques, i.e. analysis, synthesis and generalization. Results The article describes some practical situations, when the market value should be used in accounting. We provide our own definition of the current market value, disclose sources of information on the market value and propose an algorithm for selecting the valuation method at the current market value. Conclusions and Relevance The proposed definition of the current market value, algorithm for selecting its valuation method, format of statement supporting the current market value allows improving the theoretical framework for measuring the value of assets, increasing the quality of the market value measurement and avoiding any disputes with tax authorities. The proposals given herein may be used in practices of accounting departments and for educational purposes of higher educational institutions.
Keywords: valuation, assets, value, current market value, fair value
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