Mark-to-market accounting
Definition
Recognising the fair value of a contract or asset on the balance sheet rather than historical cost. Enron applied mark-to-market to long-term energy contracts, which required estimating future cash flows that management could manipulate upward.
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Explained in
- Case Studies: Enron, WorldCom, and SatyamRecognising the fair value of a contract or asset on the balance sheet rather than historical cost. Enron applied mark-to-market to long-term energy contracts,...