MARK-TO-MARKET AND THE WIDENING GAP BETWEEN FINANCIAL AND TAX ACCOUNTING

Albert D. Spalding, Jr

Global Journal of Business Research, 2011, vol. 5, issue 1, 125-137

Abstract: In the wake of the recent financial meltdown, financial reporting under both North American generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) has involved renewed attention to the structures and constraints of mark-to-market and similar expressions of fair value accounting. Despite some significant opposition by banks and other financial institutions (and their political champions), mark-to-market has enjoyed a relatively high level of support by securities regulators and by the accounting profession. Meanwhile, mark-to-market as a tax accounting concept has recently been subjected to a sustained attack by the Internal Revenue Service, courts, and legislators. This paper examines the recent Treasury regulations, revenue rulings, court cases, legislative proposals and other legal regulatory and administrative promulgations and pronouncements that comprise this renewed opposition to mark-to-market, in an effort to identify and articulate this widening gap between financial and tax accounting in the United States. Inductive research methods include legal research and analysis, and case studies.

Keywords: Tax accounting; fair value; mark-to-market; tax administration. (search for similar items in EconPapers)
JEL-codes: M4 M40 M41 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-11.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:5:y:2011:i:1:p:125-137

Access Statistics for this article

Global Journal of Business Research is currently edited by Terrance Jalbert

More articles in Global Journal of Business Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).