The FASB and the IASB have defined the provision of decision useful information as the primary objective of financial reporting. Decision usefulness is based on two fundamental qualitative characteristics, relevance and reliability (now replaced by “faithful representation”). Using a...

Current IFRSs define fair value as a transaction price. In imperfect markets, buyer's and seller's marginal prices, at which they are rationally willing to transact, differ. The transaction price can be every amount within the range between those prices. However, scenarios are conceivable in...