25 C2 6 points Saved Read carefully the extracts from the following article "Is it Fair to Blame Fair Value Accounting for the Financial Crisis?" by Robert C. Pozen published in Harvard Business Magazine. Is It Fair to Blame Fair Value Accounting for the Financial Crisis.pdf Complete the following tasks. a) In 120 words with 10% margin [108-132 words] summarise the opinion Robert C. Pozen and his argumentation about the responsibility of mark to market accounting (also called fair value accounting) in banks' insolvency during the financial crisis. Marking considerations You are not authorized to copy paste sentences from the original text; this will be penalised; it is expected that you rewrite in your own words the relevant ideas of the article, ignoring what is off topic for the question. Of course you are expected to keep the wording of Pozen for the essential technical accounting terms. You are allowed to search the internet to help to clear some confusion you are facing during your preliminary work. However, the summary ultimately must only reflect the content of the article, not the information you found in another source. Introducing elements not in the article will be penalised. In addition to the selection of the relevant ideas, the marking guide will award marks for the logical order of the sentences; therefore resort to the use of expressions, such as "as a result" "consequently" "therefore" "for example "an exception" "the reason is" "because" "however" "nevertheless" "by contrast" "similarly" "agree" disagree" "like" "unlike" etc. to make explicit the logical links between your sentences. The list provided is just an illustration and of course not all of these words need to appear in your answer. Answers that are not in the required word limit range will bear a penalty and the ideas expressed after the 132 word threshold will simply be ignored by the marker. Type the draft of your answer in a word document so you can easily check the word count (2.5 marks) b) Pozner writes "Any decrease in the fair market value of a bank's traded assets reduces the equity on its balance sheet and flows through its income statement as a loss." Complete that statement with more details on how the process described by Pozner unfolds. Your explanations need to be only in words like for a C1 question. (1 mark) (1 mark) c) When explaining the treatment of available-for-sale securities, Pozen uses the concept of OCI and accumulated OCI. Attempt to reconcile the terminology that Pozen uses with the terminology we use in the course. Indicate clearly where you see an equivalence between the concepts OCI /accumulated OCI and the course content and mention the clues that suggest that equivalence. Indicate if you see a contradiction in the explanations of Pozen about available-for-sale securities [At least try to articulate what puzzles you in his explanations]. Check other sources of information in the Internet to help you decide which interpretation is valid or how they can be reconciled. Provide the webpage addresses where you find the information you use. Marking considerations You are authorized to quote information that you find from the Internet provided that you give the source and it is relevant. it would be a mistake to have long quotes from an outside source with irrelevant content or without analysing how it helps you to progress in your analysis. An important component of the mark will be the comparisons between the content of the article and your knowledge from the course; therefore they cannot be presented separately and need to be integrated (2 marks) d) According to the article, what is an alternative explanation, if not the market fluctuations, for banks' insolvency during the financial crisis? Use the clues in the article. (0.5 mark)