Essays on Mark-to-Market Accounting Article

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The paper ''Mark-to-Market'' Accounting  is a wonderful example of Finance & Accounting   article. Fair value accounting has faced a lot of criticisms especially on of its subsets which happen to be mark-to-market accounting. During the economic crisis of 2008, FVA was blamed to have caused the crisis with some stakeholders in the finance and accounting sectors calling for its suspension. When the crisis got worse, Congress called for a hearing of the various stakeholders to give their views on the issue. The rationale of this paper is to summarize some of those views based on the presentations that were done in 2009.

The article will go further and scrutinize if FVA played any role in the crisis. Moreover, the paper will also analyze the independence of FASB. Summary of Statement by FASB Chairman The chairman of FASB aims to give a brief overview of the roles played by the organization and how it maintains its independence. In his statement, he explains the different functions of the standard setters and regulators as well as the concept of fair value accounting. Moreover, he provides observations on the calls that have been made for the suspension of fair value accounting.

FASB belongs to the private sector and is independent of any interventions. The Chairman notes that the independence of FASB is imperative in achieving its mission. Besides, the standards that are set by FASB are essential for the economy to function properly. The independence of FASB is guaranteed by the Sarbanes-Oxley Act of 2002. Just like the investors and creditors, Congress along with other stakeholders need an independent FASB for proper guidance on the standards that are set.

It is of merit to note that the Chairman is against any interventions by the Senate since they may look attractive in the short run but in the end may hurt the investors, creditors, and the U. S economy at large (Herz, 2009). At this point, it is important to establish the process by which FASB sets accounting standards. Given that the standards set by FASB affect many organizations, the organizations need to be as objective as possible and include all the views of the interested parties. The process involves public meetings, public roundtables, and liaison meetings among others.

A final decision on the standards to be set is only made after careful consideration of all the input by the interested parties.  


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Bailey, T. (2009). Statement of Thomas Bailey, Chairman, Pennsylvania Association of Community Bankers, And President and Chief Executive Officer, Brentwood Bank, On Behalf Of The Independent Community Bankers Of America (1st ed.). Harrisburg P.A: Pennsylvania Association of Community Bankers. Retrieved from

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Broden, D., & Olovsson, K. (2015). Fair Value Accounting and Procyclical Behavior in the Swedish Banking Sector (Master's). The University of Gothenburg.

Cotton, L. (2009). Statement of The Commercial Mortgage Securities Association Before the United States House Of Representatives Committee On Financial Services Subcommittee On Capital Markets, Insurance, And Government Sponsored Enterprises New York: Commercial Mortgage Securities Association. Retrieved from

Herz, R. (2009). Financial Accounting Standards Board Washington: U.S. House of Representatives. Retrieved from

Kanjorski, P. (2009). Opening Statement of Congressman Paul E. Kanjorski Subcommittee On Capital Markets, Insurance, And Government Sponsored Enterprises Washington: U.S House of the Congress. Retrieved from

Menicucci, E. (2014). Fair value accounting. Basingstoke: Palgrave Macmillan.

Van Schijndel, R. (2010). Fair value accounting and pro-cyclicality (Masters). Erasmus University Rotterdam.

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