Which of the Following Is the Definition of Fair Value

question 15

Multiple Choice

Which of the following is the definition of fair value per AASB 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:

Scrap Value

The estimated resale value of an asset after its useful life is over.

Transmitter

A device or system that sends out signals, messages, or other forms of communication.

Sum-Of-The-Years-Digits

A depreciation method that accelerates the rate of depreciation, basing it on a fraction that decreases annually.

Scrap Value

The estimated resale value of an asset at the end of its useful life.