Mark to market basis and Project appraisal: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
m (Spacing and italics added 21/8/13)
 
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1.


(MTM or M2M).
The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.


In financial accounting, the recognition of assets and liabilities at their current market values, as at the end of the financial accounting period.


2.


2.  
Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.


A basis of taxation which follows the mark to market basis of financial accounting.


''Also known as Project analysis.''


3.


''UK tax''.  
Note for both definitons above that projects are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.  


A method of allocating loan-related payments to the period in which they become due and payable and brings the value of loan relationships into account at fair value at the end of each period.
As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
 
It is only worthwile devoting time and effort in formal project appraisal for projects involving material expenditure.




== See also ==
== See also ==
* [[Accruals basis]]
* [[Real option]]
* [[Amortised cost]]
* [[Real options valuation]]
* [[Market value]]
* [[Sunk costs]]
* [[Marked-to-market reset]]
 
[[Category:Accounting,_tax_and_regulation]]

Revision as of 11:51, 21 August 2013

1.

The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.


2.

Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.


Also known as Project analysis.


Note for both definitons above that projects are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.

As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.

It is only worthwile devoting time and effort in formal project appraisal for projects involving material expenditure.


See also

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