Accounting rules contributed to small bank failures—GAO study

Accounting rules that limited loan loss provisions contributed to the failure of more than 400 community banks during the financial crisis, according to a report by the Government Accountability Office. The GAO likes the Financial Accounting Standard Board's proposed loan loss provisioning model better, but the proposed standard has drawn concerns from the Institute of Chartered Accountants in England and Wales, and the AICPA’s Financial Reporting Executive Committee.

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Compliance Week · Economia magazine (U.K.) · Journal of Accountancy