Hensarling and other Dodd - Frank critics have called that ability — known as «
orderly liquidation authority» — a bailout, even though any taxpayer money used is supposed to be recouped from the
sale of the company's
assets or an assessment on the financial industry.
Although corporations are not entitled to receive a discharge in chapter 7 bankruptcy, it is not unheard
of for the shareholders
of a struggling closely held corporation to place the business in bankruptcy so that a trustee can preside over the
sale of the business
assets in an
orderly manner.
ASC 820 «Fair Value Measurements and Disclosures» defines fair value as the price that would be received upon the
sale of an
asset or paid upon the transfer
of a liability (i.e., the «exit price») in an
orderly transaction between market participants at the measurement date and establishes a hierarchy for inputs used in measuring fair value that maximizes the use
of observable inputs and minimizes the use
of unobservable inputs by requiring that the most observable inputs be used when available.»