For an asset, it is the price (exit price) that an entity received or would have received some time back (in the past) for disposal of that asset, less, or irrespective of, any prices/ costs that it paid or would have paid or incurred for related goods or services (disposal costs). Examples of disposal costs include broker fees/ commissions. When these costs are not considered in the price, the past exit price is also called a past selling price. And if considered, this price would be referred to as past exit value.

For a liability, it is the price (exit price) that an entity paid or would have paid some time back (in the past) for extinguishing a liability, plus or, irrespective of, the prices/ costs it incurred or would have incurred for related goods or services (extinguishing or transfer costs). Examples of these costs include late payment fees. In either case, with or without consideration of these related prices or costs, the past exit value, for a liability, is known as past settlement value.