The price used to measure the fair value of an asset should be adjusted for transaction costs.

Name: The price used to measure the fair value of an asset should be adjusted for transaction costs.
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Question

Quizplus · Accepted Answer

Fair value measurement should not include transaction costs, as it reflects the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date.

The Price Used to Measure the Fair Value of an Asset