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UK bank accounting rules 'fatally flawed', warns influential watchdog
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Submitted by Steve Meyers   

The Government has been warned of a “regulatory fiasco” in which British banks have apparently adhered to flawed reporting standards for more than five years.

By Louise Armitstead

Tom Bush writes of the IFRS accounting rules: 'The UK had the first failing bank, Northern Rock, which only the month earlier appeared to have so much capital it applied to reduce it. IFRS merely reports the train crash rather than prevents it.' Photo: GETTY

UK bank accounting rules 'fatally flawed', warns influential watchdog

An influential watchdog has written to the Department of Business listing a catalogue of staggering regulatory errors that allegedly contributed to the collapse of several banks in 2008 – and still threatens the system today.

While reviewing the proposed expansion of the International Financial Reporting Standards for accounting, Tim Bush, a member of the “Urgent Issues Task Force” that scrutinises the work of the Accounting Standards Board (ASB), claims to have uncovered “fatal” and “dangerous” flaws in the system. READ MORE