Rethinking Valuation and Pricing Models

32

Valuation and Pricing Concepts in Accounting and Banking Regulation

Christopher Kullmann

Nomura Bank Deutschland

Chapter Outline

32.1 Introduction

32.2 Accounting

32.2.1 International Financial Reporting Standards (IFRS)

32.2.1.1 Definition of fair value

32.2.1.2 Valuation techniques

32.2.1.3 Hierarchy of inputs

32.2.2 Differences between IFRS and selected national accounting standards

32.2.2.1 US GAAP

32.2.2.2 German GAAP

32.3 Banking Regulation

32.3.1 Links between accounting and banking regulation

32.3.2 Capital requirements

32.3.3 Liquidity requirements

32.4 Critical Assessment

32.5 Conclusion

References

32.1 Introduction

Valuation of assets and liabilities is a key component of both financial and regulatory reporting. Apart from revenues ...