John Petersen

The Wonders of Mark-to-Market: Simultaneously Well-Capitalized and Insolvent

The problem with FAS 157 is that it abrogates both the cost principle and the going concern presumption in one fell stroke, and books all assets at the value the weakest market participant is willing to sell for. When I studied accounting, the principles that have been destroyed by FAS 157 were sacred. With FAS 157, it might make more sense to jettison the auditors in their entirety and turn the whole process over to MAI appraisers.