More NewsMcCreevy calls for urgency on fair value suspension

McCreevy calls for urgency on fair value suspension

Top EU regulator McCreevy is calling for urgent changes to fair value accounting rules

EU internal markets commissioner Carlie McCreevy had asked Brussels to make
urgent changes to accounting rules providing European banks more flexibility
over the way they treat certain assets.

‘We are urgently putting forward changes to our accounting rules to ensure
banks in the EU can avail of the same flexibility that is offered to banks in
the US – namely, this will provide the option for individual banks if they want
to move assets from their trading books to their banking books,’ McCreevy told
the European parliament.

He suggested that, while the changes were being processed, national
supervisors should apply the measure at local country level to allow banks
making use of it when preparing third quarter results, enabling valuation of
illiquid assets closer to the purchase price than the current price, thus easing
pressure on their balance sheets, the Financial Times reports.

McCreevy referred to the International Accounting Standard Board’s acceptance
of USA’s recent guidance which means American banks do not need to mark illiquid
assets to market prices. ‘This is also highly relevant for banks and should be
used for third quarter reporting,’ he said.

Further reading:

Ex AIG chief blames mark-to-market for losses

Fair value suspension branded ‘stupid’

Read
the Financial Times story

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

4m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

7m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

11m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

11m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

11m Stephanie Wix, Writer
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

1y Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

1y Stephanie Wix, Writer