$1\mathrm{.}1$ Fair Value Defined

Fair value is the price that would be receined to snil an asset ar paid to tramfera a llabiliny in an orderly $-$ icangaction between market partic gadisisin the princlpal $($or most advantagedus$)$ market at the measurement daice underket current market conditions

Fair walise is messured for a spedf c issot ur llab ilty: a group of assets andror llabilinies or an entitys cown equity instrument $($e$.$g$.$ an equity interest ssued as consideration in a business combination$).$

$=$ Fair value is a markec$-$based measure, not an entiry$-$based measure.

$=$ Fair value is measured in the principal market for the asset or liavility, or the must advantageous market in the absence of an principal market

$=$ Fair Value is an exit price $($the price to sell an asset or transter a llability$).$ noc an entrance price $($the price to acquire an asset or assume a liability$).$

A tair walue measure should reflect all of the assumptions that market participancs would A tair waiue measure should reflect all of the assumptions thatmarkn use in pricing the asset ar Tlabdity moluding assumptidns auoutisk

Fair value does not include uansection coss$,$ but may include uransportation costs if

The fair value of a nonfinancial asset assumes the highest and best use of the asset.

The fair value of a liability should include the liabllitys nonperformance risk, which is the risk The fair value of allability should include that the obligation will not be fullilled.

The fair value of an entitys own equity instrument should be measured from the $q,$ perspective of a market participant who nolds that instrument as an asset.

Fair value measurement assumes that a liability or an entitys own equity instrument Fair value measurement assumes that a labilicy or an entity s own equity instrument is transterred to a marketparticipant at the measurement date and assumes that the extinguished on the measurement date.

explain these in detail.