The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date is defined in AASB 3 Business Combinations as the:
A)market value.
B)fair value.
C)present value.
D)current replacement cost.

Question

Quizplus · Accepted Answer

AASB 3 Business Combinations defines fair value 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 measurement date. Therefore, fair value is the appropriate answer.

The Price That Would Be Received to Sell an Asset