5/18/2010

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.

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