A transaction that involves an exchange of an asset or liability between market participants assuming that such an asset/ liability has an exposure to the market for a period reasonably long to allow for normal market dynamics to interact and determine the price without any abnormal influences, before the measurement date. In this sense, an orderly transaction is not a forced transaction (e.g., a distressed sale).

If an entity’s management would find out that the evidence at hand is adequate to treat a transaction as orderly, the transaction price could be used when figuring out fair value or market risk premiums.Factors that affect an entity’s judgment as to an orderly transaction include closeness of the transaction to the measurement date, the transaction volume (in terms of units/ shares, etc.), and comparability of the underlying units/ shares with the asset/ liability subject-matter of value measurement.