Fair value is defined in the accounting standards as:
A) vendor value.
B) the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's-length transaction.
C) trade value.
D) retail value.

Question

Quizplus · Accepted Answer

Fair value is defined as the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's-length transaction. This takes into account market conditions and assumes that both parties have access to all relevant information. It is not the same as vendor value, trade value, or retail value.

Fair Value Is Defined in the Accounting Standards As