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

Featured

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Latest Special Reports

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.

Central Banking Explained

Corporate Accounting Explained