Fair value is defined under IFRS 13 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is the cornerstone of financial reporting for financial instruments (IFRS 9), business combinations (IFRS 3 / PPA), impairment testing (IAS 36) and investment property (IAS 40). In business valuation, fair value is distinct from "fair market value" (the price between a hypothetical willing buyer and willing seller) and "investment value" (the value to a specific buyer). The IFRS 13 fair value hierarchy ranks inputs from Level 1 (quoted prices) to Level 3 (unobservable inputs).

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Example: in a PPA following an acquisition, Hectelion determines the fair value of acquired customer relationships at CHF 3.8 million using Level 3 unobservable inputs (projected revenue streams, attrition rates, discount rate). This fair value — validated through a WARA consistency check — is recognised as a separate intangible asset under IFRS 3, replacing a portion of the residual goodwill.

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Hectelion determines fair values for financial reporting, transaction and litigation purposes across all asset classes, applying IFRS 13 hierarchy principles rigorously.