Replacement cost: Difference between revisions
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* [[Counterparty]] | * [[Counterparty]] | ||
* [[Current cost accounting]] | * [[Current cost accounting]] | ||
* [[Derivative instrument]] | |||
* [[Fair value]] | * [[Fair value]] | ||
* [[Potential Future Exposure]] | * [[Potential Future Exposure]] | ||
* [[Replacement cost risk]] | * [[Replacement cost risk]] | ||
Revision as of 14:28, 13 November 2016
(RC).
1. Derivatives
The current fair value of a derivatives contract, representing the amount that would need to be paid to replace the contract now, in the event of the failure of the derivative counterparty.
2. Financial reporting
In current cost accounting, the current market cost of replacing inputs, rather than their historical cost.
