In general, the term ‘fair value’ refers to the amount for which an asset could be exchanged, or aliability settled, between knowledgeable, willing parties in an arm’s length transaction.
In more specifically, IFRS 2 defines ‘fair value’ as the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm’s length transaction.
