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What Is Mark To Market?

Answer»

Mark-to-market is an ACCOUNTING practice by which companies VALUE and report their ASSETS, especially financial instruments, at market price. Market price BASICALLY refers to the price at which the asset, or a similar asset, is trading at in a public exchange. The concept is derived from the accounting principle of prudence.

Mark-to-market is an accounting practice by which companies value and report their assets, especially financial instruments, at market price. Market price basically refers to the price at which the asset, or a similar asset, is trading at in a public exchange. The concept is derived from the accounting principle of prudence.



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