Thursday, April 2, 2009

Derivative Accounting aka M2M Modified

I have blogged about this a number of times.  I have been against the expansion of mark to market accounting for a number of reasons.  Here are links/reasons.

1.  Mark to market liabilities are an inherent problem.  You don't want to do it, because of the GAAP going concern principle, but in for a dime.  Most people don't know about this or believe it.

3.  Citi books M2M liabilities.  Do people really want to do this?  The reason I wrote this is that people seemed to flat out deny that this was being done.

4.  An extensive comment on someone else's blog post regarding M2M.  

5.  A comment on a confusing WSJ article on m2m.  

6.  GE could, in theory, buy back some of its debt at a discount.  Hence the rationale for m2m liabilities.

As a general comment, people are finally starting to say things that aren't blatantly false or stupid on CNBC and in blogs and blog comments.  

It's about time.

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