Critics of mark-to-model fair value accounting claim that it is a license for management to invent the financial statements to be whatever they want them to be.

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Critics of mark-to-model fair value accounting argue that the subjective nature of the models used to determine fair value can allow management to manipulate financial statements by choosing assumptions that produce desired results. Therefore, mark-to-model fair value accounting can be seen as a license for management to invent financial statements to be whatever they want them to be.

Critics of Mark-To-Model Fair Value Accounting Claim That It Is