A mark-to-market u-turn
A reversion to the old, non-mark-to-market regime for accounting for energy trading contracts is changing the energy supply business, reports Catherine Lacoursière
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
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