Because it's the very basis of accounting. An accounting book
must always reflect the value of the assets and liabilities of a
company, should it be liquidated today. The rule protects creditors
and the rest of the society from irreconcilable bankruptcies gone
too far.
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Title: The mark to market
I remember the S&L crisis
Posted by junkmaylbox on 16th of Jan 2009 at 02:32 pm
Because it's the very basis of accounting. An accounting book must always reflect the value of the assets and liabilities of a company, should it be liquidated today. The rule protects creditors and the rest of the society from irreconcilable bankruptcies gone too far.