Fair Value Framework

Question 1

What is fair value

Answer 1

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.

Question 2

What is the most advantageous market

Answer 2

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.

Question 3

what is the principal market

Answer 3

the market available to the entity with greatest volume & level of activity for the item.