What are valuation bases used by keycorp for its investments

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The 2006 annual report of KeyCorp, a regional bank holding company headquartered in Cleveland, indicates that marketable securities are listed on the balance sheet at fair value. In addition to its marketable securities, Key notes that it also has "Other Investments" that include principal investments made predominantly in privately held companies that are also listed at "fair value." Finally, Key documents that it also has investments, including equity and real estate instruments, that "do not have readily determinable fair value." This last category of investments is carried at estimated fair value. REQUIRED:

a. Using terminology from the chapter, what are the valuation bases used by KeyCorp for its investments?

b. What are some of the challenges facing KeyCorp in valuing its "principal investments"?

c. What are some issues that investors should understand about "estimated fair value" of certain investments?

Reference no: EM131411209

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