Valuation Adjustment
/ˌvæljuˈeɪʃən əˈdʒʌstmənt/
Definitions
- (n.) An alteration in the assessed value of an asset or liability to reflect current conditions or risks, often used in financial and legal contexts such as derivatives pricing or accounting.
The valuation adjustment increased the asset's reported value to account for market fluctuations.
- (n.) A price adjustment made during the sale or purchase of an asset to account for factors like quality, condition, or risk.
A valuation adjustment was applied to the property price due to structural damages disclosed during the inspection.
Forms
- valuation adjustment
- valuation adjustments
Related terms
See also
Commentary
Valuation adjustment is most common in financial legal contexts, especially relating to derivative contracts or asset transfers; clarity about the basis and method of adjustment is crucial in documentation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.