The fair value method in accounting adjusts the values of assets and liabilities in the balance sheet to reflect their current exchange value. This approach assumes that values at acquisition date are the same as fair value. The goal is to provide users with current values for better understanding of a company's financial position. However, not all assets and liabilities can be easily valued using this method, as some may lack market data. The fair value concept is based on the idea that a company plans to continue operating without the need for immediate liquidation.