01 Jan 2001, Energy Risk glossary , Energy Risk
In the pricing of financial instruments, the value determined by mathematical modelling of the instruments’ value.
Also used as a defined term in US accounting standards as ‘fair-value accounting’ and ‘fair-value hedges’ as in Financial Accounting Standards Board Statement 133 (FAS 133). A fair-value hedge is a hedge of the exposure to changes in the fair value of a recognised asset or liability, or of an unrecognised firm commitment, which are attributable to a particular risk.
* see also Financial Accounting Standards Board Statement 133 (FAS 133)
© Incisive Media Investments Limited 2013, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093