Capital Standards under review

According to Reuters, there are new standards that could affect the way banks look at off-balance sheet vehicles. This could cause banks to have to move assets throughout books and affect their assets.

Some financial firms created special entities separate from their balance sheets to avoid reporting requirements or to reduce the amount of capital they needed to hold to satisfy regulatory requirements. As the financial storm gathered, uncertainty about some of those vehicles helped undermine confidence in banks and accelerated the financial crisis.

The new standards are aimed at improving accounting and disclosure associated with those vehicles.

Read the full story here.

You Business Impact Assessement

At the IFRS USA blog, they suggest conducting a impact assessement. How will your financial statements be affected by the new accounting system. The IFRS USA blog provided a list:

• The FASB & IASB have several topics on their convergence Agenda including:
• Financial Statement Presentation (Performance Reporting)
• IFRS 2 Share-based Payment Amendment – group cash-settled share-based payment transactions Impairment
• Income Taxes – Reconsideration of IAS 12
• Insurance Contracts – Phase II (Comprehensive Project)
• Joint Ventures – Reconsideration of IAS 31 Leases
• Liabilities (was part of Business Combinations – Phase II)
• Post-employment Benefits including Pensions
• Rate-regulated Activities
• Related Party Disclosures
• Revenue Recognition
• (IFRS for) Small and Medium-sized Entities (also referred to as Private Entities and Non-publicly Accountable Entities)
• Intangible Assets Extractive Activities IFRS XBRL Taxonomy
• Conceptual Framework Project Update
• Business Combinations Project Update
• Financial Statement Presentation
• Revenue Recognition Project Update