Early versions of ASC 320 (formerly SFAS No.115) would have required all marketable securities to be carried ar market value on the balance sheet.

i. Prepare a brief argument against this method of accounting.

ii. Now, prepare a brief argument in support of this method of accounting.

iii. Which position would you have supported if you had been CFO of State Street in 2012? How would your answer differ if you were an investor?