Under the fair value model, investment property is measured at fair value, which is
A) the price that would be received to sell the investment property in an orderly transaction between market participants at the measurement date.
B) the present value of the discounted cash flows.
C) the price that is similar to other assets that are traded in real estate market.
D) the price determined by an independent appraisal.

Question

Quizplus · Accepted Answer

The fair value model defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, which aligns with choice A. Choices B, C, and D describe other methods or considerations that might be used in determining value but do not directly define fair value under this model.

Under the Fair Value Model, Investment Property Is Measured at Fair