Which of the Following Is the Definition of Exit Price

question 12

Multiple Choice

Which of the following is the definition of exit price per AASB 13?

• A) 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).
• B) The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction
• C) 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.
• D) The price that would be received to sell an asset or paid to transfer a liability.

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Definitions:

Convention on Contracts

Refers to international agreements or treaties that set out the rules governing contracts, especially those that have cross-border implications.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed by the parties involved to be legally enforceable.

Parol Evidence

A legal rule that prohibits the introduction of outside evidence to add, modify, or contradict the terms of a written agreement.

Clerical Error

A minor mistake or omission made due to oversight or mishandling in documents, records, or transactions, typically seen as non-material and correctable.