Orderly transaction definition

What is an Orderly Transaction?

An orderly transaction is a monetary business event for which there has been a sufficient amount of time to engage in normal marketing activities to inform the parties adequately about the transaction . Conversely, it is not a forced transaction, such as a bankruptcy sale, where the resulting prices tend to be much lower. An orderly transaction is needed in order to arrive at the fair value of an asset or liability .

Related AccountingTools Course

Fair Value Accounting