Sir David Tweedie, International Accounting Standards Board (IASB) chairman, has suggested international standards soon under consideration might make it mandatory for banks to disclose their off-balance sheet interests in a strict and detailed form.

Sir David told the Financial Times ‘we might even mandate the disclosure – not only saying: “you have to show these things,” but “this is exactly how you’re going to show it”. We don’t normally do that.’

The changes are part of a raft of credit squeeze-related matters under urgent consideration by the IABS following a request from the Financial Stability Forum which last week presented a paper at the G7 finance ministers’ meeting.

IASB is expected to produce a draft proposal on improved standards this autumn. Demonstrating the importance of the issue, it will not issue the usual discussion paper and is expected to give the draft a minimum consultation period of 60 days instead of the customary six months.

Further reading:

Profile: Sir David Tweedie, setting the standards

Credit crunch sparks fair value revolt

Read the full story in the Financial Times