匿名
匿名 發問於 商業及金融其他 - 商業及金融 · 1 十年前

fair value of financial asset

why and how fair value of the financial asset and financial liability are the same and so the net fair value is zero

1 個解答

評分
  • 1 十年前
    最愛解答

    Take residential property as an example. People needs to borrow money from the bank which amounted to 70% of the purchase price of the residential property in order to buy the property. This is the financial liability of the property. However, if the fair value (we assume that it equals to the market value of the property) falls, the net asset (fair) value drops correspondingly as net asset value equals fair value minus finanical liability. Therefore, if the fair value of the asset equals its financial liability, the net fair value is zero.

還有問題嗎?立即提問即可得到解答。