The exit value that an entity expects to obtain from selling an asset/ business (or broadly an economic resource) or to surrender upon transferring a liability all in an exchange-like transaction, and net of selling/ disposal costs. For an entity holding the asset or liability, this transaction takes place in a principal market (most active market), or in the absence of such a market, in a most advantageous market. A terminal exit value is a net amount, being the difference between expected selling price and expected selling costs in the normal course of business.

In addition to the current exit value, the terminal exit value is used for determining the fair value of an asset/ a liability. The terminal exit value of an asset (sometimes called its expected cash equivalent value or expected net realizable value) constitutes the “expected” monetary amount (price) that the asset could be exchanged for if sold on a future date in the ordinary course of business, minus disposal costs, if any.