Under which approach 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 approach where the client is expected to estimate fair value based on a model of the future cash flows associated with the instrument or asset is called mark to model. Therefore, the best choice is C) Mark to model. The other options, A) mark to market model, B) replacement model, and D) historical cost model, do not involve estimating fair value based on future cash flows.

Under Which Approach Is the Client Expected to Estimate Fair