RegulationAccounting StandardsStop using accounting as a scapegoat says FRAC chair

Stop using accounting as a scapegoat says FRAC chair

Blaming IFRS for poor judgment is like blaming tape measures for not building flood defences high enough

ACCOUNTING has been unfairly blamed for the poor judgements of bank boards and regulators in the run up to the financial crisis, the chair of the Financial Reporting Analysis Committee and chief executive of the CFA Society have claimed.

In a letter sent to the Financial Times, the FRAC’s Jane Fuller and Will Goodhart of investment association CFA said that banks “over-distributed to staff and shareholders, supressing the level of loss-absorbing equity” in pursuit of return on equity.

According to Fuller and Goodhart, this is the fault of boards and not numbers.

“Blaming IFRS for poor judgement on bank capital and distributions to staff and shareholders is like blaming a tape measure for failure to build flood defences high enough,” they said.

Related Articles

Sports Direct implements FRC corrections in annual reporting

Accounting Standards Sports Direct implements FRC corrections in annual reporting

1y Stephanie Wix, Writer
Former CFO joins IASB board

Accounting Standards Former CFO joins IASB board

1y Stephanie Wix, Writer
Cashflow statement improvements targeted by watchdog

Accounting Standards Cashflow statement improvements targeted by watchdog

1y Stephanie Wix, Writer
FRC expects Brexit narrative within annual reports

Accounting Standards FRC expects Brexit narrative within annual reports

1y Stephanie Wix, Writer
FRC consults on approach to updating FRS 102 for changes in IFRS

Accounting Standards FRC consults on approach to updating FRS 102 for changes in IFRS

1y Richard Crump, Writer
IASB issues amendments to insurance contracts standard

Accounting Standards IASB issues amendments to insurance contracts standard

1y Richard Crump, Writer
LAPFF urges FTSE 350 companies to disregard the FRC

Accounting Standards LAPFF urges FTSE 350 companies to disregard the FRC

1y Richard Crump, Writer
Six ways Brexit will impact companies’ financial statements

Accounting Standards Six ways Brexit will impact companies’ financial statements

1y Richard Crump, Writer