Banks face rules for 'strict and detailed' disclosure

Sir David Tweedie, International Accounting Standards Board (IASB) chairman, has suggested international standards soon under consideration might make it mandatory for banks to disclose their off-balance sheet interests in a strict and detailed form.

Sir David told the Financial Times ‘we might even mandate the disclosure – not only saying: “you have to show these things,” but “this is exactly how you’re going to show it”. We don’t normally do that.’

The changes are part of a raft of credit squeeze-related matters under urgent consideration by the IABS following a request from the Financial Stability Forum which last week presented a paper at the G7 finance ministers’ meeting.

IASB is expected to produce a draft proposal on improved standards this autumn. Demonstrating the importance of the issue, it will not issue the usual discussion paper and is expected to give the draft a minimum consultation period of 60 days instead of the customary six months.

Further reading:

Profile: Sir David Tweedie, setting the standards

Credit crunch sparks fair value revolt

Read the full story in the Financial Times