Why does the new definition focus on an exit price when valuing and asset or liability?

Name: Why does the new definition focus on an exit price when valuing and asset or liability?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The new definition focuses on an exit price when valuing an asset or liability because it focuses on the current value, is specific to the item being considered, and introduces the concept of an external party into the transaction. Therefore, all of the options are correct.

Why Does the New Definition Focus on an Exit Price