The Turner report on reforming financial regulations, due to be published on
Wednesday, has heard complaints from banks that accounting rules have worsened
the economic crisis, the Financial Times reported.
Banks have complained that accounting rules have prevented them from making
provisions for future losses by forcing them to mark assets to market prices
when they have no intention of selling, the newspaper said.
Accountants fear that if clumsy changes were introduced to the way banks
account for any provisions they could leave managers with too much latitude and
risk some choosing to ‘smooth’ earnings to cover poor performance, the FT said.
The FSA could only recommend a change to accounting rules, although
accountants told the FT that Lord Turner ‘gets’ their concerns.
The FT also said that the prime minister, Gordon Brown, believes Wednesday’s
report from Lord Turner, chairman of the FSA, will also provide valuable
ammunition in Britain’s drive for global regulatory reforms at next month’s G20
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges