When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or the liability under current market conditions, including assumptions about risk. In investing, it refers to an asset’s sale price agreed upon by a willing buyer and seller, assuming both parties are knowledgable and enter the transaction freely. There are a range of methodologies that can be used to identify an investment value. In comparison, the investment value of an acquisition will encompass a broad range of variables and assumptions. Once this practice, along with other dubious accounting methods, came to light, the company quickly unraveled, and it filed for Chapter 11 bankruptcy on Dec. Financial Accounting Standards Board.