FAR 20:Fair value measurements

Question 1

Tecnicas de Medir Fair Value

M I C
There are three valuation techniques used to determine the fair value of certain financial assets and liabilities: the market, income, and cost approaches.
1. The market approach uses information from market transactions (eg, current trading prices on the New York Stock Exchange) of identical or similar items.
2. The investment company’s matrix pricing model uses current pricing of similar securities to determine the fair value of the private placement securities.

Answer 1