Sir, Like many commentators both Anatole Kaletsky (Economic view, June 15) and Professor Myddleton (letter, June 19) criticise mark-to-market accounting but fail to suggest a better method.
One can either carry the financial instruments at historic cost with a note to the financial statements reflecting their current value or value the financial instruments at their market value
in the financial statements themselves. In either case the difference between the cost and market value is plain to see and an institutional investor can make a judgment as to the financial viability of the entity concerned.
In addition it is wrong to suggest, as Professor Myddleton does, that most going concern businesses do not value their assets as if they were going to be liquidated