FASB's definition of fair value is characterized as a measure of market-based entry value, which would be the amount a company paid to acquire the asset.

Question

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FASB's definition of fair value is not necessarily characterized as the amount a company paid to acquire the asset, but rather it is defined 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. This may or may not be the same as the amount originally paid to acquire the asset.

FASB's Definition of Fair Value Is Characterized as a Measure