Under FASB 157, the valuation of Level 3 assets is labeled:
A) marking to market.
B) marking to matrix.
C) marking to myth.
D) marking to major.
E) marking to minor.

Question

Quizplus · Accepted Answer

FASB 157 defines Level 3 assets as those with unobservable inputs, meaning that their valuation may be based on management's estimates or assumptions rather than objective market data. This has led to criticism and skepticism regarding the accuracy and reliability of Level 3 valuations, and the term "marking to myth" has been used to describe this process. The other choices (A-D) are not commonly used or recognized terms in accounting or finance.

Under FASB 157, the Valuation of Level 3 Assets Is