LTM and Level 2 valuation inputs: Difference between pages

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imported>Doug Williamson
(Add abbreviation. Source: ACT blog https://www.treasurers.org/festival-treasury-transformation-roundup-day-2)
 
imported>Doug Williamson
(Create the page. Source: IFRS 13, page A629)
 
Line 1: Line 1:
Last Twelve Months.
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
 
 
A time period used in evaluating performance over time.
 
For example, LTM unit sales, sales revenue, profit measure or profitability ratio.
 
 
Many smaller bodies report annual figures, only once per year.
 
Often for larger organisations, each time relevant figures are available for investors, it will be when the firm reports - often quarterly or half-yearly.
 
Within an organisation, commonly monthly accounts are produced, but some matters - unit sales, injury-causing accidents, for example - will be reported on more frequently.
 
As well as use in performance evaluation, LTM figures can also be useful in detecting irregularities such as fraud, false accounting, etc.
 
 
LTM figures are sometimes referred to as "moving annual" or "rolling annual" figures and may, for example, be expressed as "moving annual total" (abbreviated to MAT).
 
 
Also known as ''Trailing'' Twelve Months (TTM).




==See also==
==See also==
*[[Association of Corporate Treasurers]]
*[[IFRS 13]]
*[[Cost per unit]]
*[[Fair value]]
*[[Moving average]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]

Revision as of 16:20, 26 July 2015

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.


See also