A mark-to-market u-turn

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Accounting regulators in the US have given the energy industry an early Christmas present – a new ruling that eliminates mark-to-market (MtM) accounting for non-derivatives contracts, called EITF 02-3. For fiscal reporting after December 15, energy firms will fall in line with the rest of the corporate US and only be allowed to mark-to-market energy trading contracts that meet the generally accepted definition of a derivative. Since 1998, the energy industry has had its own accounting...

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