Which of the following statements about the measurement of 'fair value' is incorrect?
A) It is an exit value.
B) A liability's fair value takes into consideration the time value of money.
C) In an active market, as asset's fair value is observable and verifiable.
D) It is an entry value.

Question

Quizplus · Accepted Answer

Fair value is an exit value, not an entry value. It reflects the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Which of the Following Statements About the Measurement of 'Fair