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Fair value measurement requires judgment, as it involves estimating what the price would be if the asset or liability were to be sold in an active market. Factors like market liquidity, risk, and other relevant information play a role in determining fair value.
Hey, accountancy can be tricky at first but just stick with it and practice lots of questions. Don’t hesitate to ask your teachers for help, I’m sure they’ll be glad to clarify your doubts. All the best!
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