CERTYNEX IFRS ACADEMY

Which statements about the transaction assumed by a fair value measurement are correct? (Several answers.)

The measurement assumes a forced sale, on the terms the entity would obtain if it had to dispose of the asset urgently.

The entity must be able to access the market, but need not be able to sell the asset at the measurement date to use the price in that market.

The measurement assumes an exchange in an orderly transaction between market participants, at the measurement date and under current market conditions.

Without an observable market providing a price at the measurement date, no transaction is assumed and the asset remains measured at cost.

Even without an observable market, the measurement assumes a transaction at the measurement date, from the perspective of a market participant that holds the asset or owes the liability.