Valuation inputs: Difference between revisions

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The assumptions that market participants would use when valuing the asset or liability, including assumptions about risk, such as the following:
The assumptions that market participants use when valuing an asset or liability, including assumptions about risk, such as the following:


#The risk inherent in a particular valuation technique used to measure fair value (such as a pricing model).
#The risk inherent in a particular valuation technique used to measure fair value (such as a pricing model).

Revision as of 14:24, 11 September 2016

The assumptions that market participants use when valuing an asset or liability, including assumptions about risk, such as the following:

  1. The risk inherent in a particular valuation technique used to measure fair value (such as a pricing model).
  2. The risk inherent in the inputs to the valuation technique.


Valuation inputs may be observable or unobservable.


See also