The transaction to sell the asset or settle the liability is a hypothetical transaction as of the measurement date that assumes an appropriate period of exposure to the market to be considered orderly.

Question

Quizplus · Accepted Answer

This statement accurately describes the concept of fair value measurement, which assumes that the transaction to sell the asset or settle the liability takes place under market conditions that are orderly, meaning there's enough time for proper exposure to the market to ensure a fair transaction.

The Transaction to Sell the Asset or Settle the Liability