explain the step model for assessing rlevent trends in the broad business enviroment?


By substituting trend measurement for values in the following example, I believe you will have found your answer:

Steps involved in the one-step valuation method

1. On the key date of the valuation you determine the value

2. Compare the amounts in local currency to determine which of the three values will become the new book value (in local currency). You make this decision on the basis of the write-up/write-down rules defined in the valuation principle.

3. Calculate the inflation write-up or write-down in position currency.

4. Multiply the value write-up or write-down by the old exchange rate

5. Determine the write-up/write-down amount caused by changes in the exchange rate

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One Response to explain the step model for assessing rlevent trends in the broad business enviroment?

  1. mahleezah says:

    By substituting trend measurement for values in the following example, I believe you will have found your answer:

    Steps involved in the one-step valuation method

    1. On the key date of the valuation you determine the value

    2. Compare the amounts in local currency to determine which of the three values will become the new book value (in local currency). You make this decision on the basis of the write-up/write-down rules defined in the valuation principle.

    3. Calculate the inflation write-up or write-down in position currency.

    4. Multiply the value write-up or write-down by the old exchange rate

    5. Determine the write-up/write-down amount caused by changes in the exchange rate
    References :
    http://help.sap.com/saphelp_45b/helpdata/en/f4/8195c4521411d2a5e90000e839d005/content.htm