Under which of the following approaches is the client expected to estimate fair value based on a model of the future cash flows associated with the instrument or the asset?
A) Mark to market model.
B) Replacement model.
C) Mark to model.
D) Historical cost model.

Question

Quizplus · Accepted Answer

The client is expected to estimate fair value based on a model of future cash flows associated with the instrument or asset under the mark to model approach. This approach considers inputs from various sources like market data, interest rate curves, etc., and builds a model to estimate the fair value of the asset or instrument based on future cash flow projections.

Under Which of the Following Approaches Is the Client Expected