SOS Mark to Market

One of the achievements of the G 20?

Will it solve the problem if we change to mark to model instead of using mark to Market?

I have never heard of the underlying fundamental of an asset will improve just because we change the accounting treatment. The asset does not have much underlying value not because it is illiquid, it is because the asset does not carry such value. The new accounting treatment may only defer the problem, but will not solve it at all.

It is like change the accounting treatment from writing of interest expenses immediately instead of amortising it over the concession period of the toll. The fact is that one may improve the profit and loss account, and perhaps the rating, the underlying fact is that the interest is already being paid. Whether we write off immediately or over 10 years, the said cash flow is already out of the company and never gonna come back, no matter how we treat it.