US ‘monoline’ insurers face recognizing liabilities sooner under new
accounting rules proposed by the US Financial Accounting Standards Board.
The move means the insurers will have to recognize a liability when there is
evidence of deterioration in the insured product, rather than when it actually
The move means so-called ‘monoline’ insurers will have to bring forward
potential bad debt issues in their accounts.
Monolines insure bonds, meaning they were exposed to many of the bond
problems associated with the US sub-prime crisis.
The new rules were announced late last week. Bond insurers also will be
required to disclose securities on their watch lists and provide more
information about risk management.
Monoline shares suffered as a result of the moves.
The change ‘is particularly timely in light of recent concerns about the
financial health of financial guarantee insurers, and will help bring about much
needed transparency and comparability to financial statements,’ said Mark
Trench, the project manager for the new rules.
Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Long-serving PwC director Fiona Westwood has moved to Smith & Williamson and stepped up to partner