The Effect of Temporary Changes of Fair Value on Net Asset Value of financial assets An In-Depth Analysis of Fund Accounting Dynamics

Abstract

This research thesis explored the relationship between fluctuations in fair value measurements and the Net Asset Value (NAV) of investment funds. Through a comprehensive analysis using regression models and ANOVA, the study demonstrates that fair value adjustments significantly impact NAV, revealing a strong correlation between these variables. The findings confirm that the volatility of fair value measurements plays a critical role in the variability of NAV, underscoring the importance of accurate financial reporting and robust risk management in investment fund management. This thesis contributes valuable insights into the financial dynamics that influence fund valuation, providing a foundation for further research and practical applications in the field of finance.