Fair Value Framework Flashcards
1
Q
What is fair value
A
It is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
2
Q
What is the most advantageous market
A
it is the one in which the reporting entity could sell the asset at a price that maximizes the amt. that would be received for the asset or that minimizes the amount that would be paid to transfer the liability.
3
Q
what is the principal market
A
the market available to the entity with greatest volume & level of activity for the item.
