MARK TO MANAGEMENT

An accounting practice of giving a fair market value on a good, asset/liability, or service, based not on present or historical market price, but on the holder’s assumption on the worth of a good, asset/liability, or service, either in an actual or speculative market. It encompasses not only assessing past prices and external observations in the market, but also involves non-observable assumptions around the asset/liability, commodity, or service based on internal data.

This is cited as a way of knowing the possible value of an asset, item, or service by which there is no existing market at present or because the market is undergoing unusual large volatility, making fair value assignment difficult, if possible, under a normal mark to market accounting.

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