Mark to market accounting

The Economist has a very interesting article looking some accounting rules that have different views from different sides. On one side, some believe that loans, securities, and frauds should be accounted for at market prices. On the other side, managers believe that assets should be accounted for at cost and only be written down when losses are likely to occur. The IASB has stepped in and set some new rules on this topic, and they want a system that is not going to change when the economic cycle travels up and down. Read the full article here.