What is book value accounting vs market value accounting

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Reference no: EM132572060

Risk Consultant and the bank is currently reporting its financials using the book value accounting method. The bank is considering an international move in which it can switch to the market value accounting method.

Question 1: Asked to a report for the bank`s management. The report should discuss what is the difference between book value accounting and market value accounting, how do interest rate changes affect the value of bank assets and liabilities under the two methods. Provide an example that supports your position on this, and what is marking to market?

Reference no: EM132572060

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What is book value accounting vs market value accounting : What is the difference between book value accounting and market value accounting, how do interest rate changes affect the value of bank assets and liabilities
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