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accounting theory: text and readings
accounting theory: text and readings

... During the period between the end of a company’s fiscal year and the issuance of its financial statements, events might occur that aren’t reflected in its accounting records. May be either ...
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...  Revenues – increases in net assets resulting from an entity’s operation over a period of time.  Expenses – decreases in net assets resulting from an entity’s operation over a period of time.  Net Income - the excess of revenues over ...
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... higher than performance quoted above. Investment return and principal value fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Prospectuses contain more complete information on management fees, distribution charges, and other expenses. Please rea ...
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... • Operating guidelines are classified as assumptions, principles, and constraints. • Assumptions provide a foundation for the accounting process. • Principles indicate how transactions and other economic events should be recorded. • Constraints on the accounting process allow for a relaxation of the ...
Irmgard Marboe
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Mark-to-market accounting

Mark-to-market or fair value accounting refers to accounting for the ""fair value"" of an asset or liability based on the current market price, or for similar assets and liabilities, or based on another objectively assessed ""fair"" value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early 1990s, and is now regarded as the ""gold standard"" in some circles.Mark-to-market accounting can change values on the balance sheet as market conditions change. In contrast, historical cost accounting, based on the past transactions, is simpler, more stable, and easier to perform, but does not represent current market value. It summarizes past transactions instead. Mark-to-market accounting can become volatile if market prices fluctuate greatly or change unpredictably. Buyers and sellers may claim a number of specific instances when this is the case, including inability to value the future income and expenses both accurately and collectively, often due to unreliable information, or over-optimistic or over-pessimistic expectations of cash flow and earnings.
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