An approximation to the fair value (FV) as a measurement base (for assets and liabilities). Such a measure is resorted to in a situation where observable transaction prices are not available for specific assets/ investments that are not actively traded, but nevertheless have an observable price in the sense that an approximated value (to fair value) can be figured out using comparable inputs.

Deemed fair value is typically an option for measuring items such as non-actively traded securities or equity investments, real estate units, etc. The deemed fair value is based on certain estimated amounts and indicators thought to appropriately reflect the market at a given point in time (or as corresponding to a certain period of time).