But the forecast was made ‘excluding the effects of derivative and equity valuations introduced with IAS39’, because ‘we can’t predict market volatility’, the bank said.
Banks and insurance companies, however, are expected to be the hardest hit by IAS39, the controversial accounting standard on derivatives, because they are the biggest users of financial instruments.
Last month, ratings agency Fitch sent out a warning about derivatives. It said that the way companies are accounting for their derivatives’ transaction could bring problems in the future.
‘The complexity of current derivative accounting standards and the low level of transparency create a new set of challenges for investors and analysts,’ said the agency.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
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Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day