![]() ![]() ![]() Many people agree that mark-to-market reflects the true value of an asset as it is decided with respect to the current market price. At the time of closing of market, the price assigned to each stock is the price that buyers and sellers decide at the end of the day. For example, stocks that an individual holds in his/her demat account are marked to market every day. The mark-to-market principle was largely adopted during the 20th century.ĭescription: Mark-to-market is a tool that can change the value on either side of a balance sheet, depending on the conditions of the market. Mark-to-market can also be defined as an accounting tool used to record the value of an asset with respect to its current market price. It has been a part of the generally accepted accounting principles in the United States since 1990 and it is regarded as gold standards in some areas. Mark-to-market provides a realistic estimate of a financial situation. Definition: Mark-to-market refers to the reasonable value of an account that can vary over a period depending on assets and liabilities. ![]()
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