Fair value is measured by considering the highest and best use of the asset.

Name: Fair value is measured by considering the highest and best use of the asset.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Fair value 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. The concept of highest and best use considers the use of the asset that maximizes its value, which is a key factor in determining fair value.

Fair Value Is Measured by Considering the Highest and Best