When assets are acquired in a noncash transaction, if the fair value of the noncash items given is not clearly evident, then the fair value of the assets received is used to record the assets.
Fair value is a market-based measurement. It is not considered an entity-specific measurement.
For some given assets and liabilities, observable market transactions or market information can be available. For some other assets and liabilities, observable market transactions and market information may not be available.
However, the objective of the measurement of fair value in both cases is the same.
In order to estimate the price at which an orderly transaction needed to sell the asset or in order to transfer the liability would take place between market participants at the measurement date under current market conditions.
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