Carrying Value Adjustment

Refers to all other adjustments to the value of FR 2052a balance sheet products necessary to arrive at the carrying value consistent with section 102 of the LRM Standards. These adjustments may be represented as positive or negative numbers depending on whether they correspond to increases (positive) or decreases (negative) to the asset or liability balance sheet product values represented elsewhere in the Inflows, Outflows or Supplemental sections of the FR 2052a report. Carrying value adjustments may include cases: • where the amount reported under an FR 2052a balance sheet product represents the undiscounted cash value, but the carrying value should reflect the fair value of the exposure; • where the amount reported under an FR 2052a balance sheet product represents the fair or market value, but the carrying value should reflect the historical book or amortized cost value; • where the scope of exposures reportable for an FR 2052a balance sheet product exceeds the scope of exposures applicable under section 102 of the LRM Standards.