SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: tejek who wrote (421186)9/30/2008 9:37:50 PM
From: i-node  Read Replies (1) of 1577019
 
>>> As I understood it, mark-to-market has to do with valuing futures and commodities in the stock market, not the housing industry.

Mark-to-market can be applied to anything, but historically has been applied to components of income not capital assets. Originally, it was used only for stock-in-trade -- inventory -- in a variant known as LCM (Lower of cost-or-market), which has been employed in financial accounting forever. Then it was applied to the items you mentioned, then in the mortgage business.

It supports the concept of conservative accounting, e.g., when it is likely you have a loss, you report the loss rather than carrying an asset at an overstated value.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News