A method of accounting that records all assets at a set of value measures (asset valuation bases) such as current replacement cost (entry value), economic value (net present value), current selling price, or net realizable value (NRV) (exit value), and all liabilities at present value. In other words, this concept calls for measuring assets at the current value at which they could be sold or disposed of as of the current date, and liabilities at the current value at which they could be settled (repaid) as of that date.

Selection of the proper asset valuation base depends on circumstances and market conditions surrounding an entity, in addition to identification of the party requiring such a valuation (owners, creditors, managers, etc.) A good starting point might be the deprival value of an asset. This value captures the maximum amount the entity would lose if the asset is disposed of.

Current value accounting requires the periodic up-dating of values (of assets and liabilities) to keep pace with new market reality and other entity-specific developments.