An auditor should expect that fair value is the price that would be received to sell an asset in an orderly transaction between the market participants at the:
A)Acquisition date of the asset.
B)Audit report date.
C)Expected replacement date of the asset.
D)Measurement date (ordinarily the date of the financial statements).

Question

Quizplus · Accepted Answer

Fair value is the estimated price that would be received to sell an asset in an orderly transaction between market participants on the measurement date, which is usually the date of the financial statements. Therefore, the correct choice is D.

An Auditor Should Expect That Fair Value Is the Price