Section 133 of the Emergency Economic Stabilization Act of 2008 (?EESA?) requires the SEC to conduct a study of ?mark to-market? accounting by January 2, 2009.1 Mark-to-market accounting, also known as ?fair value accounting,? means that firms should value their assets based on their current market prices. Mark-to-market was originally advocated as a more accurate valuation methodology than valuing assets at their ?historic cost? (i.e., the price originally paid for them). Problems arise, however, when market prices of assets cannot easily be measured.

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