Doubt About FAIR VALUE

lbazer

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Hello,
I’m reading the different recording alternatives for assets and liabilities and lots of the alternatives is either something (example: amortized cost) or FAIR VALUE.
WHAT IS EXACTLY FAIR VALUE????
 
IFRS: the amount at which an asset could be exchanged or a liability settled in an arm’s length transaction between knowledgeable and willing parties.
US GAAP: essentially the same, but uses exit price (price to sell an asset or transfer a liability) instead of entry price (price to buy an asset, or incur a liability).
Practical definition: price to buy or sell an asset, price to incur or settle a liability.
 
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