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Hello Mike,
This is more P2ish type of question I feelIs fair value accounting the same as Mark to Market accounting?
If not, whats the difference?Thanks in advance
Wikipedia states that they are different expressions for the same thing – it’s where assets and liabilities are valued on the basis of their current market value
It would be unusual to consider assets and liabilities as being subject to daily change so the expression is probably more relevant for share prices on a recognized stock exchange
There the price of securities is changed and reported on a daily basis whereas the TNCA of an entity remains comparatively static
However, if you consider inventory and receivables, their values do take account of obsolescence and falls in resale value (inventory) and the risk of non-recovery (receivables)
OK?
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