Which of the Following Is the Definition of Fair Value

question 17

Multiple Choice

Which of the following is the definition of fair value per IFRS 13?

• A) The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction;
• B) 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;
• C) The price that would be received to sell an asset or paid to transfer a liability;
• D) A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (eg a forced liquidation or distress sale).

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Definitions:

Late Binding

A programming mechanism where method calls are resolved at runtime rather than compile time, allowing for more dynamic and flexible code.

Private Methods

Functions or procedures within a class that are not accessible or visible to objects outside the class.

Final Methods

Methods in Java that cannot be overridden by subclasses, ensuring consistent behavior across different implementations.

Declared Final

A keyword in programming that indicates a variable, method, or class cannot be modified after it is defined.