GO
Loading...

Mark-to-Market Accounting: CNBC Explains

Mark-to-market accounting entered the national debate during the financial crisis, when the SEC’s rules about mark-to-market accounting (also known as fair value accounting) were criticized for exacerbating problems for the nation’s banks. How does fair value differ from the historical cost of assets, and why would these valuations fluctuate? Salman Khan of the Khan Academy explains in a simplified example.

From this video, you’ll understand:

  • The rationale behind mark-to-market accounting
  • How mark-to-market and fair value accounting differ from historical cost

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • YPO's (Young Presidents' Organization) 22,000 top executives provide commentary about the issues affecting the economy.

  • CNBC 'Explains' the complicated economics of our world—from stocks and balance sheets, to trade and public policy.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.