The cost-adjusted-to-market method of accounting for investments allows for a departure from cost when the market value of the investment falls below or rises above cost.

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The cost-adjusted-to-market method, also known as the fair value method, allows for the adjustment of the cost of an investment to its market value when the market value falls below or rises above cost. This is done to reflect the current value of the investment and provide more accurate financial information to users.

The Cost-Adjusted-To-Market Method of Accounting for Investments Allows for a Departure