= Position Sensitivity × Move in the variable in question Revaluation method This method calculates the value of a trade based on the current and the prior day's prices. The formula for price impact using the revaluation method is Impact of Prices = (Trade Value using Today's Prices) - (Trade Value using Prior Day's Prices) for some small-value assets such as "loose tools". Depreciation = value at the beginning of the year (opening balance) + purchases in the year - value at the end of the year (closing balance) PnL unexplained PnL unexplained is a critical metric that regulators and product control within a bank alike pay attention to. PnL attribution is used to test the hypothesis that the risk factors identified for a risky position are sufficient to materially explain the value change expected from the risky position;. Such that if position sensitivities to those risk factors are calculated, then the value change observed over a day can be attributed to the market price change of those risk factors, with the magnitude of the estimated as a sum product of the risk factor sensitivities and the corresponding daily risk factor price change. Any residual P&L left unexplained (PnL unexplained) would be expected to be small IF the identified risk factors are indeed sufficient to materially explain the expected value change of the position AND if the models used to calculate sensitivities to these risk factors are correct. PnL unexplained is thus a critical metric that when large may highlight instances where the risk factors classified for a risky position are incomplete or the models used for sensitivities calculations are incorrect or inconsistent. External links PnL Explained Professionals Information and examples from PnL Explained Professionals Association's home page Pantz, Julien 2013 PnL prediction under extreme scenarios References Financial statements Financial markets Financial risk Derivatives (finance)