Accounting- Fair Value and Data Analytics

Visualization and Description 5

Scatterplot: Fair Value Comparison by Amount Difference

This scatterplot depicts the difference in fair value between December 31, 20Y1, and September 30, 20Y2, for each security included in the investment portfolio as of both dates.

The X-axis represents the fair value of securities as of December 3, 20Y1, the Y-axis represents fair value of securities as of September 30, 20Y2, and the red circles represent individual securities. The solid line indicates zero change in fair value; thus, each red circle on the solid line represents a security with no changes in fair value. Red circles above the line represent securities with an increase in fair value and red circles below the line represent securities with a decrease in fair value.

Question

Response

What does this visualization show?

How might these observations affect

our risk assessment?

What can we do to understand the change in the fair value of the

securities?