IASB proposes changing the way banks measure liabilities

05/12/2010 | Reuters

The International Accounting Standards Board, in response to extensive consultation, proposed altering the way liabilities are measured by banks so they don't book profit after a credit rating downgrade. "Whilst there are theoretical arguments for treating financial assets and liabilities in the same way, it is hard to defend the accounting as providing useful information when a company suffering deterioration in credit quality is able to book a corresponding large profit," said IASB Chairman David Tweedie.

View Full Article in:

Reuters

Published in Brief: