What is 'fair value' in SAP FI-AF-SAI - Simplified Accounting Integration?

fair value - Overview

• Component: FI-AF-SAI

• Component Name: Simplified Accounting Integration

• Description: The acquisition costs of a leased object, minus the impairment for example, through depreciation and plus possible value adjustments arising during the leasing period.

fair value - Details

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  Key Concepts: 
  Fair value is a term used in the SAP FI-AF-SAI Simplified Accounting Integration component to refer to the current market value of an asset or liability. It is the amount that would be received if the asset were sold or the amount that would be paid to transfer the liability. 
  
  How to use it: 
  In SAP FI-AF-SAI Simplified Accounting Integration, fair value is used to determine the value of an asset or liability at a given point in time. This value can then be used to calculate the gain or loss on the asset or liability. 
  
  Tips & Tricks: 
  When calculating fair value, it is important to consider factors such as market conditions, supply and demand, and other external factors that may affect the value of an asset or liability. 
  
  Related Information: 
  Fair value is closely related to other accounting terms such as book value and market value. Book value is the original cost of an asset minus any depreciation, while market value is the current price of an asset in the open market.