The valuation technique used to measure fair value should maximize the use of relevant unobservable inputs.

Question

Quizplus · Accepted Answer

The valuation technique used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the entity's own assumptions about the assumptions market participants would use.

The Valuation Technique Used to Measure Fair Value Should Maximize