The purchase price/ transfer price of an asset/ liability that is determined based on the amount required to exchange the asset or liability in an orderly transaction between market participants. Exchange refers to the sale of the asset or transfer of the liability at the measurement date. If fair value is supposed to represent the price in a sale or a transfer, that price is simultaneously an exit price for the seller and an entry price for the buyer.

Entry price represents the perspective of buy-side: what a company would pay to acquire an asset or pay to settle a liability. Fair value was previously viewed as entry price. It is now synonymous with an exit price (sell-side).