Fair value and how it is defined
What is the fair value and how it is defined?
Fair value 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. A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date, including the condition and location of the asset; and restrictions, if any, on the sale or use of the asset.