Nationwide blames accounting rules for £726m loss
Nationwide says accounting rules wiped out an entire year’s profit on paper as its assets value plummeted in the credit crunch
Nationwide says accounting rules wiped out an entire year’s profit on paper as its assets value plummeted in the credit crunch
Nationwide
Building Society says it was forced to post the mark-to-market losses on its
£25.5bn portfolio of treasury assets because of changed accounting rules after
the credit crunch wiped £726m from their market value.
The sums were enough to have wiped out an entire year’s profits had the
losses been crystallised, according to The Times.
But Nationwide emphasised the amount was paper losses only. By holding the
investments to maturity, the building society is confident the losses, which did
not have to be booked through the profit and loss account, would be made good.
Graham Beale, chief executive, said the assets, typically mortgage-backed
securities, had dropped in value because of the liquidity shortage, not because
of any material deterioration in their underlying quality.
Further reading:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourcePwC's Australia tax scandal has led to significant changes, including over 300 job cuts and the refusal to share a crucial report with Australian parl...
View articleAccountants and accounting firms play a crucial role in maintaining financial integrity, facing ethical dilemmas and regulatory challenges. Adherence ...
View articleThe creation of an effective sustainability standards infrastructure requires not only high-quality sustainability reporting and assurance standards, ...
View articleChanges will help to make accounting profession more attractive, ICAEW boss says Read More...
View article38% of firms required significant improvements, prompting the council to state Tier 2 and Tier 3 firms must "prioritise audit quality improvements and...
View articleFaber has been outspoken about the EU's approach and reinforces the ISSB's approach of a climate transitioning on the "necessary scale" Read More...
View articleEffective corporate reporting on sustainability will prevent greenwashing issues and deliver more data for better implementation of climate policies R...
View articleBy staying informed, seeking expert guidance, and adopting a forward-looking approach, accountants can successfully navigate the new regulatory landsc...
View article