Author(s): Maya Dewi
Mark-to-market accounting, also known as fair value accounting, plays a significant role in how companies report the value of their assets and liabilities. In volatile markets, this method can present both opportunities and challenges, as fluctuating market prices can lead to significant variations in financial statements. This article examines the implications of mark-to-market accounting in volatile markets, discussing the associated challenges and outlining best practices for businesses to effectively manage these fluctuations. It also explores how businesses can balance transparency and stability in their financial reporting during periods of market uncertainty