Inexperience and staff turnover at the international standard setter have been cited as reasons for the derailing a project to overhaul problematic off-balance-sheet rules.
The rules, attacked recently for allowing risky structures to be kept off the books of lenders, have been described by the International Accounting Standards board as 'irretrievably broken', the FT reported.
However an IASB report made candid admissions about how the project to overhaul current off-balance sheet rules lost momentum because of staff turnover and 'relative inexperience'.
It also recommended the urgent appointment of a senior figure to take charge of the project.
'We cannot afford the luxury of waiting for the newly assigned staff to get up to speed,' the report said.
The report further admitted that an overhaul of the rules would not be possible in the near future.
Further reading:
King to get tough on banks' balance sheets
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