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