What is exit price?

Exit price plays a pivotal role in the fair value measurement framework, serving as a cornerstone for gauging an asset's or liability's market value. It is 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.

What is an exit value?

An exit value is the estimated price which would be received for the sale of an asset or transfer of a liability on the open market. People determine exit values for accounting purposes and these values may be used in a variety of ways. Exit values are distinct from entry values, which reflect the price which would be paid to acquire something.

What is the difference between entry price and exit price?

While the entry price refers to the cost at which an investor acquires an asset, the exit price is the value at which they dispose of it. The disparity between these two figures can significantly influence the investor's profit or loss and is often considered the ultimate test of fair value.