Mark-to-Market Debate: Models in Accounting

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Uploaded by on Feb 6, 2009

Regulatory and Accounting specialist Douglas G. Wilding, CPA explains why it may be dangerous to use models or estimates in accounting.

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Education

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  • If a bank, or any company, has bought a bunch of assets, and today they can't sell them at all, because market demand for the assets has sunk below zero, why shouldn't investors be alerted to the fact that these assets are currently worth zero? How does it help anybody to tell the company's investors that these assets currently have value, when this is actually false information?

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