Fair value means the price that would have been received to sell an asset or paid to transfer a liability in an orderly transaction between market participants or between willing parties in an arm’s length transaction at the transaction date.
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. An arrangement or a transaction is deemed not to be an arm’s length transaction if it has been entered into on terms more favourable to either party to the arrangement than would have been otherwise obtained.