Fair value is determined as:
A) the current exit price.
B) the current entry price.
C) a future entry price.
D) a future exit price.

Question

Quizplus · Accepted Answer

Fair value is determined as the current exit price, which is the price at which an asset can be sold or liability can be settled, in an orderly transaction between market participants at the measurement date. It reflects the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, the appropriate discount rate, and any other factors relevant to pricing the asset or liability.

Fair Value Is Determined As