A Conceptual Proposal to Use Appraisal Value as a Supplementary Basis for Financial Valuation

This paper argues that no single valuation basis is completely reliable: neither market price nor other alternatives can accurately measure value. Therefore, this paper proposes that a preferable solution is to simultaneously record two bases of valuation: market price and appraisal value. Thus by expanding the dimensionality of financial reporting, one can provide a broader, richer, and more accurate measurement of value.

Keywords: Valuation; market price; appraisal value; financial reporting.