Market participant

Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics:

  1. They are independent of each other, ie they are not related parties as defined in IAS 24, although the price in a related party transaction may be used as an input to a fair value measurement if the entity has evidence that the transaction was entered into at market terms.
  2. They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary.
  3. They are able to enter into a transaction for the asset or liability.
  4. They are willing to enter into a transaction for the asset or liability, ie they are motivated but not forced or otherwise compelled to do so.

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