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29 Mar 2011
SUB-STANDARD accounting rules inflated the value of RBS assets by £25bn at the height of the financial meltdown, an expert has claimed.
Activist investor Tim Bush calculated that under the pre-2005 UK accounting rules, the bailed out bank would have held tangible shareholder assets worth £33bn - rather than the £58bn worked out using international accounting standards.
Further reading
Bush, who is a member of the Urgent Issues Task Force that watches over the Accounting Standards Board, told The Telegraph the core tier one ratio for 2010 was erroneously inflated from 6% to 10.7%.
The House of Lords report into accounting practices is published tomorrow, and firms fear harsh conclusions about their role in the financial crisis.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
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Visitor comments Add your comment
''Dud Accounting Standards" and Global adoption of IFRS
What then is the moral justification for pushing for world- wide adoption of standards that has been confirmed as "not being fit for purpose"?
Posted by: Sunday Okaro, 29 Mar 2011 | 13:02
All very rosy
All well and good, but when is the government going to be reprimanded for its role in this crisis, including its "independent" central bank's very hefty role? The Big Four at least perform a useful social function. What is the government's "useful" function at this point other than pointing fingers at everyone but itself? Hypocrisy turned into an artform.
Posted by: Anthony, 29 Mar 2011 | 13:38