Fair Value

Question 0

The fair value for a financial asset is the quote price in the most advantageous market

Answer 0

Without adjusting the price for transaction costs. Transaction cost are used to determine the market is one is not selected

Question 1

The guidance for determining fair value provided in the fair value framework is not appropriate for determining

Answer 1

the fair value of legal services received in exchange for an entity’s common stock. ASC 820 specifically exempts share-based payment transactions (and inventory valuing and other minor items) from the purview of the fair value framework.

Question 2

Inventory valued at lower cost or market does not apply what measurement

Answer 2

Fair value

Question 3

The determination of fair value is based on a

Answer 3

Hypothetical transaction and an exit price