Quote:
Originally Posted by Mavdog
ironic you would bring up skilling, the application of mark-to-market was pivotal in enron's ability to inflate their asset values, in that case m2m worked to increase asset values to unrealistic figures. enron would not have been such a train wreck if m2m wasn't applied
the pivotal question is if assest values should refect a value on a single day and time, or a more accurate longer term view.
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the pivotal question is accounting, not appraisal. Lower of cost or market works fine for this. If there is no market for the asset, then that ought to tell us something about the asset's value.