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:

Sample Size

The number of observations or replicates included in a statistical sample, crucial for the reliability and accuracy of the study or experiment.

Infinite Population

An idealized concept of a population so large that its size is not diminished by the sampling process.

Standard Deviation

An estimator for the amount of disparity or spread found in a set of numerical values.

Sample Mean

The average value of a subset of a larger population, used to estimate the population mean.