FASB's definition of fair value of an asset is characterized as a measure of market-based exit value, which is the amount for which a company could sell the asset.

Question

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FASB (Financial Accounting Standards Board) defines fair value as 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, which aligns with the concept of a market-based exit value.

FASB's Definition of Fair Value of an Asset Is Characterized