The fair value of an equity instrument is based on determining a/an _________ price which may relate to the price paid for an entity to repurchase its shares.
A) transfer;
B) settlement;
C) entry;
D) exit.

Question

Quizplus · Accepted Answer

The fair value of an equity instrument is based on determining an exit price, which represents the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. The exit price may relate to the price paid for an entity to repurchase its shares, among other factors. So, choice D represents the correct option.

The Fair Value of an Equity Instrument Is Based on Determining