Bank accounting attacked
A fresh attack has been levied on a key accounting measure for banks, calling on MEPs to block their endorsement by the EU.
The Local Authority Pension Fund Forum (LAPFF) said this week that IFRS9, an accounting standard for banks' treatment of financial instruments written by the International Accounting Standards Board, fails to meet core legal standards.
The LAPFF sought legal opinion from QC George Bompas who concluded that international standards do not require an obligation to give a “true and fair view” in accounts.
Bompas also concluded that international standards have not been drafted to calculate “distributable profits”, a central aim of accounts in law. His opinion states that if distributable profits are not at the heart of the accountin
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