An appraisal is a valuation of the market value of an asset. It is derived by an experienced practitioner who creates a report, stating the reasoning behind a specific valuation. Appraisals are routinely conducted for a variety of properties, such as businesses, real estate and antiques. There are many reasons for appraisals, such as deriving a value for insurance purposes, for the sale of an asset, or to determine the division of property for an inheritance or divorce. An appraisal can be based on several possible methods, such as comparables in the marketplace and cash flows (in the case of a business valuation or rental property).

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Fair Value Accounting