Definition of Fair Value
SFAS No.157 definedfair value “ the price that would bereceivedto sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . ’’9 This definition is based on exit price. For an asset , fair value is the price at which it would be sold . In contrast , an entry price for an asset is the price at which it would be bought . The exit price is to be used regardless of