What does mark-to-market accounting mean?
Definitions for mark-to-market accounting
mark-to-mar·ket ac·count·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word mark-to-market accounting.
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Mark-to-market accounting
Mark-to-market or fair value accounting refers to accounting for the "fair value" of an asset or liability based on the current market price, or for similar assets and liabilities, or based on another objectively assessed "fair" value. Fair value accounting has been a part of Generally Accepted Accounting Principles in the United States since the early 1990s, and is now regarded as the "gold standard" in some circles. Mark-to-market accounting can change values on the balance sheet as market conditions change. In contrast, historical cost accounting, based on the past transactions, is simpler, more stable, and easier to perform, but does not represent current market value. It summarizes past transactions instead. Mark-to-market accounting can become inaccurate if market prices fluctuate greatly or change unpredictably. Buyers and sellers may claim a number of specific instances when this is the case, including inability to value the future income and expenses both accurately and collectively, often due to unreliable information, or over-optimistic or over-pessimistic expectations.
Numerology
Chaldean Numerology
The numerical value of mark-to-market accounting in Chaldean Numerology is: 4
Pythagorean Numerology
The numerical value of mark-to-market accounting in Pythagorean Numerology is: 1
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"mark-to-market accounting." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/mark-to-market+accounting>.
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