IFRS 13 The best Fair value fundamentals discusses the key concepts in the fair value standards, including the definition of fair value, inputs to fair value measurements, and the fair value hierarchy. It also addresses certain issues associated with the application of these concepts.
1 Definition of fair value
The fair value standard defines fair value:
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.
Under the fair value standard, fair value is based on the exit price (the price that would be received to sell an asset or paid to transfer a liability), not the transaction price or … Read more