What does IFRS 13 require regarding the market for fair value measurement?

IFRS 13 establishes a framework for measuring fair value and provides guidance on the valuation of assets and liabilities in the context of the market. The standard emphasizes the importance of using market-based information to determine fair value, specifically focusing on the price that would be received for an asset in an orderly transaction between market participants at the measurement date.

The requirement that the measurement should "maximize the amount received to sell an asset" aligns perfectly with this objective. It indicates that the fair value should reflect the highest price achievable in the market under normal conditions, contributing to a more accurate representation of an asset's value.

In contrast, the other choices do not accurately reflect the goal of fair value measurement as per IFRS 13. The notion of using "the least active market" fails to recognize the standard's preference for the most advantageous conditions for selling an asset. Reflecting "current historical cost" does not capture the essence of fair value, which is intended to represent current market conditions rather than historical prices. Lastly, considering a company's internal pricing strategy diverges from the requirement to use observable market data and transactions, as fair value should be determined based on market participant assumptions rather than entity-specific considerations.

Therefore, the correct answer emphasizes the market-driven aspects of fair value