👉 In accounting and finance, a "compensable" term is one that is capable of being measured or quantified in relation to its original value. It typically refers to an entity that can be adjusted for changes in market conditions, such as rising interest rates or falling oil prices. For example, if a company's stock price goes up due to increased economic growth and inflation expectations, the compensable term might be "equity," which represents the value of the company's assets based on its current
