With £1.635bn in writedowns, Barclays revealed that it had fared better than its rivals during the credit turmoil but questions remain over the bank's accounting approach to recognising the losses.

But the bank insists its accounting is prudent – arguing that is figures were audited by the same PwC team that took a tough stance with the AIG insurance group, forcing them to adjust their accounting.

Barclays' losses were inclusive of a £658m gain on the carrying value of the bank's own debt – indicating that the bank's own lending is less onerous as well as the debts owed to it.

Analysts have also raised questions over Barclays' approach to valuing £7.37bn worth of loans to private equity groups, sitting on the balance sheet. The bank has written off £130m in fees and taken a £58m hit to its portfolio, even though several leveraged loans are moving between buyers at less than 90% of their original value, the FT reported.

Further reading:

Barclays bust-up on hold as results speak for themselves

Barclays breathes a sigh of relief as it avoids writedown shock

Barclays director lands £14.8m bonus