Mark-To-Market Accounting vs Historical Cost Accounting: What’s the difference?
Financial Accounting Standards Board eased the mark to market accounting rule. This suspension allowed banks to keep the values of the MBS on their books. When oil prices dropped in 1986, the property held by Texas savings and loans also fell. Expressed inversely, a mark-to-market system applies annual taxes on asset appreciation irrespective of the taxpayer’s realization behavior. Moreover,…