What defines fair value under IFRS 13?

What defines fair value under IFRS 13?

• A. The price to sell an asset or transfer a liability in an orderly transaction at the measurement date, using observable inputs and market-based assumptions
• B. Replacement cost
• C. Book value
• D. Intrinsic value

Answer: (C)

Under IFRS 13, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This exit price concept uses observable inputs when available and reflects market-based assumptions. It is not replacement cost, not book value, and not intrinsic value. So the description that matches fair value is the one describing an exit price at the measurement date.

Under IFRS 13, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This exit price concept uses observable inputs when available and reflects market-based assumptions. It is not replacement cost, not book value, and not intrinsic value. So the description that matches fair value is the one describing an exit price at the measurement date.