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Incidentally, if I remember my accounting class right, in the Danish version of reality you have to book the full expected value of your contingent liabilities.


  1. that is inconsistent with mark-to-market accounting or equal to it by definition; or
  2. expected value could be zero with a large dispersion in either direction

Regarding 2) suppose you have booked the expected value. You now have a contingent liability and a contingent asset, where only one of the two can be nonzero at any given time. How do you book that?

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Apr 21st, 2011 at 04:22:05 PM EST
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