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rayso33
Topic Author
Posts: 27
Joined: March 23rd, 2009, 8:08 am

Mark-to-Market

April 20th, 2009, 9:00 am

I read the Basel paper and Accounting Standards, both of them tried to classify the mark-to-market method according to market conditions. They suggested that the market quote is applied when the market is active, and the mark to model is applied when the market is inactive.However, they didn't mention how to determine the market is active or inactive. Would anyone share his/her view on this topics?THanks
 
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HTFB
Posts: 148
Joined: February 17th, 2004, 12:47 pm

Mark-to-Market

April 21st, 2009, 3:42 pm

My view on the topic? It's a complete farce.
 
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rayso33
Topic Author
Posts: 27
Joined: March 23rd, 2009, 8:08 am

Mark-to-Market

April 22nd, 2009, 2:56 am

yes, I agree. Unfortunately, I have to earn my living in this farce envirnoment. And I need to show to the regulation that I have to do a lot of works to show our "profession".But I don't know how people can do this
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Mark-to-Market

April 22nd, 2009, 6:41 am

QuoteOriginally posted by: rayso33I have to earn my living in this farce envirnoment. And I need to show to the regulation that I have to do a lot of works to show our "profession". That's why you have to hire lawyers and accountants. Why do accountants make fancy copmplicated basel rules and then keep revising them every year? Because the more complicated the rules are, the more they can charge to explain it to you. Why do you trade every day? Because the more you churn clients portfolios, the more you can charge them. The whole financial system is a scam. Everybody has to justify why they should make a lot of money, and they justify it by inventing a lot of unnecessary work to do.
Last edited by KackToodles on April 21st, 2009, 10:00 pm, edited 1 time in total.
 
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gjlipman
Posts: 1102
Joined: May 20th, 2002, 9:13 pm

Mark-to-Market

April 22nd, 2009, 8:43 am

It has been a while since I looked at these things, but when it was IAS39, it did have some rules and some guidance on what constituted an active or inactive market.And most banks have developed guidance on what evidence is required to show that a market is active or inactive (based on discussions with auditors, accountants and other banks).
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Mark-to-Market

April 23rd, 2009, 6:47 am

QuoteOriginally posted by: gjlipmanwhen it was IAS39, it did have some rules and some guidance on what constituted an active or inactive market. rules, smules. I got news for you. they "interpret" the rules, which means they just make it up as they go along.
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