Extrapolation and Unobservable valuation inputs: Difference between pages

Revision as of 20:09, 27 June 2022

Fair value accounting.

Unobservable valuation inputs are valuation inputs:

For which market data are not available and
That are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

@@ Line 1: / Line 1: @@
-# A straight-line estimation method where the estimated result lies beyond the range spanned by two or more known data points.
+''Fair value accounting. ''
-# More generally, any estimation method where the estimated result lies beyond the range spanned by two or more known data points.  (Not necessarily using straight-line methods of estimation.)
+Unobservable valuation inputs are valuation inputs:
-Extrapolation is generally a less reliable estimation method than Interpolation.
+#For which market data are not available and
+#That are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.
-Extrapolation can be particularly unreliable when historical trends - for example historic growth rates - are projected into future periods for planning purposes.
-== See also ==
+==See also==
-* [[Approximation]]
+*[[Fair value]]
-* [[Interpolation]]
+*[[IFRS 13]]
-* [[CAGR]]
+*[[Observable valuation inputs]]
+*[[Valuation inputs]]
+[[Category:Accounting,_tax_and_regulation]]