A group of London institutional investors has put pen to paper in a scathing
criticism of International Financial Reporting Standards.
Their analysis, seen by The Telegraph, concludes that under IFRS, banks such
as HBOS, Bradford and Bingley and Northern Rock were able to trade while
insolvent last year.
At the heart of the critique is the way banks provision for losses under
IFRS. Before international standards came in, banks estimated losses for future
years and used forward provisioning to smooth their results year-on-year.
Under IFRS, banks aren’t able to make a provision unless a borrower has
actually defaulted. Banks can no longer make a risk assessment on all loans
before they hit trouble.
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
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