You can’t pick and choose accounting systems for three months

Posted on

Accountancy Age has reported that both the Republicans in the US and the Tories here have called for a suspension of markka to market accounting.

Three things follow:

1) It is clear they wanted this in the upside to exacerbate profit reporting and another method of accounting in the downside that mitigates loss reporting. That is evidence of a commitment to market manipulation.

2) It shows they do not understand the continuity of accounting data;

3) It shows they are only capable of panic, not rational thinking.

I have massive reservations about fair value accounting. I think it based on a false premise. I do not think the Republicans and Conservatives have nay idea what they're talking about though. Which indicates that as yet not much has changed there.