IFRS 13Chapter 2Lesson 1
The definition: exit price, market participants, characteristics
Step 1 of 6Learning objectives
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Fair value 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. The entity's intention does not count; the item's characteristics do if the market would take them into account.
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Learning objectives
- Determine whether an amount is an exit price rather than an entry price.
- Describe market participants and explain why their assumptions prevail over the entity's.
- Identify the characteristics of the asset or liability that enter the price and those that do not.