price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
take into account the characteristics of the asset or liability if market participants would take those characteristics into account
most advantageous market
assumes that the asset or liability is exchanged in an orderly transaction
assuming that market participants act in their economic best interest.
takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it
assumes that a financial or non‑financial liability or an entity’s own equity instrument (eg equity interests issued as consideration in a business combination) is transferred to a market participant at the measurement date
liability would remain outstanding and the market participant transferee would be required to fulfil the obligation
entity’s own equity instrument would remain outstanding and the market participant transferee would take on the rights and responsibilities associated with the instrument
measure the fair value of the liability or equity instrument from the perspective of a market participant that holds the identical item
measure the fair value of the liability or equity instrument using a valuation technique from the perspective of a market participant that owes the liability
Non‑performance risk is assumed to be the same before and after the transfer of the liability
appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs
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