Fair value of an asset must reflect its "highest and best use" by others and not how it is used by the company.

Name: Fair value of an asset must reflect its "highest and best use" by others and not how it is used by the company.
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Question

Quizplus · Accepted Answer

Fair value accounting requires that the value of an asset reflects how it would be used in the market by other parties, not necessarily how the company is currently using it. This is known as the asset's "highest and best use."

Fair Value of an Asset Must Reflect Its "Highest and Best