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Essay text:
One of the most important introductions is the fair value measurement.
I?Fair Value and its application environment.
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.
The imprecation of the Fair Value is limited to the market environment.
1?Active market
2?Fair trade
If there is active market, which is as fair value generally considers input value reflects fair value for replacement cost. Consider the transaction value to reflect the current fair market value; if there are not active markets, and it’s not easy to find similar assets or similar asset’s active markets, the present value of future cash flow will be featured playing fair value...
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