Fair Value Measurement

Definition

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. IFRS 13 establishes the framework for fair value measurement, including the three-level hierarchy (Level 1: quoted market prices; Level 2: observable inputs; Level 3: unobservable inputs) used to categorise measurement reliability. Intangible assets acquired in business combinations are typically measured at Level 3 fair value using income-based techniques.