Final answer:
The valuation techniques for measuring fair value of assets use both observable and unobservable inputs; hence the answer is (D) Yes Yes.
Step-by-step explanation:
The valuation techniques used to determine (measure) the fair value of an asset may include various kinds of inputs. These inputs are categorized into two types: (1) observable inputs, which are openly available and can be seen in the market, like stock market prices, and (2) unobservable inputs, which are not readily available in the market and may include a company's own data such as expected cash flows. According to the question's choices, the correct answer would be (D) Yes Yes, since the valuation techniques can indeed use both observable and unobservable inputs.
The inputs to valuation techniques used to measure fair value may include observable and unobservable inputs. Observable inputs are inputs that can be directly observed in the market, such as prices for identical or similar assets. Unobservable inputs are inputs that cannot be directly observed in the market and require judgment or estimation, such as future cash flows or discount rates.