(7)When assessing compliance with the profit and loss attribution requirement, theoretical changes in a portfolio’s value are compared against hypothetical changes which are calculated under the assumption of a static portfolio. That comparison aims at identifying the materiality of differences in the valuation processes of the institution’s risk-measurement model producing the theoretical changes, and the valuation processes of the institution’s internal systems producing the hypothetical changes. To ensure that that comparison is not affected by changes in the composition of the portfolio, the theoretical changes to a portfolio’s value used in the profit and loss attribution requirement should also be calculated under the assumption of a static portfolio.